Umm Kulthum Bint `Uqbah (May Allah be pleased with her) Reported: Messenger of Allah (PBUH) said, ” The person who (lies) in order to conciliate between people is not a liar when he conveys good or says (something) good “.
[Al-Bukhari and Muslim].

The narration in Muslim added: She said, ” I never heard him (she meant the Prophet (PBUH)) giving permission of lying in anything except in three (things) :

war, conciliating between people and the conversation of man with his wife and the conversation of a woman with her husband “.

Commentary: This Hadith tells us a very important principle, that is, in spite of its being unlawful, one is permitted to tell a lie if one has to do it to reform one’s society or family or in the interest of Muslims in general. If two Muslim brothers are estranged and someone communicates to them such things which are likely to remove conflict and rancor between them, promote mutual love and bring them nearer to each other, such action, even if it has a lie, is not called a lie in Islam.

1. In order to keep the enemy unaware of the true position, it is permissible to make false propaganda as it is an indispensable device for winning the war.

2. In order to maintain a pleasant atmosphere in family life, and for this purpose telling a lie becomes inevitable. Shari`ah has permitted lying on such occasions.