Articulated more in the context of religion than science, racism is regarded by social scientists as an ideology disguised in various forms under global circumstances. Understanding of racism share common characteristics with the contemporary concept of Islamophobia. Deconstructing selected literary works of Lorrain Adams, John Updike and Don Delillo within Fredrickson’s notion of racism ‘as scavenger ideology’, the present study unveils racism incorporated in Islamophobia in fiction. The purpose of this study is mainly to explore Islamophobia as a manifestation of racism in the selected American literary texts to understand American perspective of Islam and Muslims. Denouncement of lslam and Muslims appear important means to reproduce and rationalize racism as an expression of extended anti-Islam prejudice in modern fabrication in these texts. The study uses Derrida’s conviction in the eternal quality of literary texts outliving their authors to become part of a set of cultural habits equivalent to, if not surpassing, the importance of authorial intentions. The ideology remains living and shapes the general belief of the masses. Rather than tracing the origin of racism and Islamophobia, the study encompasses literature review related to the changing forms of racism during late 20th century to early 21st century and its contemporary evolution into Islamophobia. The study is significant in unravelling the concealed anti-Islam agenda practiced through language. Its genuine contribution to the existing knowledge is to establish relationship of racism and Islamophobia contextualized within 9/11 attacks previously unexamined in the body of selected literary fiction. The study concludes by necessitating interfaith community interaction that may help in decreasing religious conflicts. The study also proposes a thorough discursive understanding of Islam as a code of life because most of the Western and American assumptions generated from ignorance.