In light of the dichotomous representation of the relationship between Islam and the West, the life and work of Ignaz Goldziher appears to be an utter anachronism. By applying the methodologies of Protestant biblical criticism to the study of Islamic traditions, the Hungarian scholar of Islam and secretary of the liberal Jewish community in Budapest became a crossroads of Judaism, Christianity and Islam. Personally driven by a Jewish reform agenda, he became a founding father of modern studies on Islam. The article analyzes the complex historical and political context in which Goldziher developed the field of Islamic studies. In order to understand the origin of modern images of Islam, the article suggests putting the rise of the discipline of Islamic studies into the context of nineteenth century movements of religious reform.