The answer is quite simple, but first we need to understand that the proposition 'Islam is religion of peace' is actually false.
Islam is not a religion of peace nor a religion of war.
Islam is a way of life, and not unlike others, it consists of peacemakers and warriors.
Does Islam seek a peaceful and tranquil society? Yes. And sometimes, to achieve this, war is necessary.
An absolute pacifist is just as immoral as a war monger. The former refuses to defend themselves and even other people from the latter, and the latter takes advantage of the former so that they can murder in the pursuit of power. The perfect practitioner of one affirms the other.
But Islam is neither.
Islam is a warriors' religion meant for peaceful goals. It has a strict code of ethics, not only during times of peace, but also times of war.
Jihad is an ever present reality in the life of a Muslim, whether they be battling against their own egos or a physical foe willing to destroy them.
And those struggles lead to a better world, both within and external to the believer.
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