The establishment of the All India Muslim League in December 1906 was the manifestation of Muslim nationalism in the Indian Sub-Continent. The opposition of Hindu intellectuals, politicians and the aristocrats to Muslim interests in all walks of life compelled the Muslims to search for their own political identity in order to secure their own rights and interests. Revival of Hindu nationalism in the 19소 century, opposition of the Hindus to the partition of Bengal, spread of Hindu cults and religious ceremonies in every walks of national life, the treatment of the Muslims as serfs by the Hindu zaminders and aristocrats, and further demands of the Hindus for the formulation of government programs in all levels on the basis of Hindu religion, culture, and philosophy made the Muslims aware of their rights. It also made them realize the need for the formation of their own political organization in order to achieve those ends in view. The Muslims of India, while keeping themselves away from the Congress, went ahead with the intention of forming their own political platform as a means to secure their rights and interests. Thus, the formation of the Muslim League was the outcome of this self- realization on the part of the Muslims of India, although the Hindus, especially the Indian National Congress leaders, did not like this exclusive organization of the Muslims and reacted in a critical manner. In order to alleviate the skepticism of the Congress leadership, the Muslim League leaders, from the very beginning, repeatedly declared that their first and foremost intention among other things, was to enhance the credibility of this new organization by the promotion of friendly cooperation between Muslims and other communities in India. The Hindus, however, continued to look at this organization in a suspicious manner. Even they did not hesitate to describe the formation of the League as “Nawab Salimullah's last fad” and some of their leaders demanded that it was at the instigation of the British government of India that several governmental pension holders, financially insolvent and bankrupt aristocratic Muslim leaders had formed this organization and that it had no relationship with the mass of Muslim population. Several pro-Congress newspapers forecast the immature death of the League until and unless it cooperated with the Congress. The Anglo-Indian newsmedia, on the other hand, remained skeptical about the future existence and role of the League. The British government, on its part, had refused to accept the League as the sole representative of Muslim interests and initially kept itself aloof from cooperating with the League. Besides the opposition of the Congress and attacks of its media, the Muslim League also encountered the hostility of the Muslim leaders belonging to the Congress Party who even instituted rival political institution of the League and tried to obstruct the normal functioning of the League as an active political organization. The Muslim League leaders however, struggled hard to overcome this unfavorable situation and were successful in transforming this newly founded organization into a mass organization in its real sense. With the help of published secondary materials attempts will be made in this paper to find answers for the following questions: Why did the Congress specially, the pro-congress newspapers were vehemently attacking the Muslim leaders and the British administration because of the emergence of the Muslim League? What measures did the Muslim League undertake to counteract this challenge of the Congress? Did the Congress leadership believe in a multiparty democratic system? What difficulties did the Congress leaders discover in the formation of a separate organization for the Muslims of India and how far these were real?