This paper critically analyses the controversial critique that followed the publication of Iqbal’s Asrār-i Khudī. Iqbal became the target of severe criticism on the use of the word ‘Khudī’; he was accused of borrowing the concept from Nietzsche; his views about pantheism were slammed and considered a revolt against religion; his views about Plato and Hafiz were also harshly criticized. Iqbal responded to this criticism and defended his views with sound arguments. This article is a study of this entire debate