Religious tolerance is a pressing ethical concern in religiously pluralistic societies, where diverse faith communities coexist in shared social, political, and economic spaces. This study investigated religious tolerance in Okitipupa, Ondo State, Nigeria, through a Christian ethical lens, focusing on the role of church-based moral formation in shaping attitudes and behaviours toward Muslims and African Traditional Religion (ATR) adherents. The research employed Wesleyan Social Holiness as a normative framework and Reinhold Niebuhr’s Christian Realism as the analytical framework to examine how ethical instruction interacts with social and structural realities. Using a descriptive research design, primary data were collected from Christian, Muslim, and ATR community members through structured questionnaires and oral interviews, complemented by secondary sources including scholarly texts and church documents. Findings revealed that church-based ethical teaching significantly promotes respect, relational accountability, and peaceful coexistence, while principles of social holiness foster moral formation that translates into practical tolerance. However, occasional social tensions persist, highlighting areas for further ethical education and dialogue. Consequently, Christian Realism highlighted structural and social factors that moderate ethical practice, ensuring a realistic assessment of the challenges. It recommended that the integration of ethical education in religious institutions and establishment of formal interfaith structures will enhance understanding, tolerance and peaceful co-existence among various religious faithful in Okitipupa. The research concluded that Christian ethical teachings play a significant role in promoting religious tolerance in Okitipupa thereby contributing to peaceful coexistence in a religiously pluralistic society.