This article largely based on field research presents analysis of the branches of Islam in contemporary Russia and its influence on ethnically diverse society. In this context authors examine complexity of ethnic composition and the role of ethnicity, focusing in particular on identity changes in Dagestan. Author describe general global trends as well as regional features of Islamic religion which partly confirm and refute the perception that the Islamic factor plays a role in the development of culturally diverse society. Particular attention is paid to radical forms of Islam.