Abstract
A person can communicate others by speaking, by writing and by signals. Speaking is the most authentic source of conversation among all. For reaching to the soul of a speech or confabulation, man has set universal principles and rules. For interpretation of a speaker, the most inevitable thing is to understand the language in which a narrator is speaking, to explore the context, to look the conditions in which a discussion is being held and then to use intellect to determine the meaning. The same rules are applied for interpreting the saying of Prophet Muhammad (S.A.W). By ignoring these rules, it is most likely to misinterpret the traditions of Prophet (S.A.W). Traditions and Hadiths are the key interpretation of the Holy Quran and themselves are the laws. So, in this situation, it becomes more important to apply universally accepted and established principles to reach the true meaning. Islamic scholars, particular Hanfi scholars, gave exceptional importance to these principles and applied them to understand the traditions. Molana Anwar Shah also applied those rules in elucidation of the hadith. The basic question is which are those basic rules and principles? How these rules may apply in Hadith? How Molana Anwar Shah interpret the Hadiths? In this article, In this article, those principles will be discussed in analytical method Which Molana Anwar Shah Kashmiri applied in interpreting the hadith.
 Key words: Principles, Confabulation, Determining, context, Thoughts
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