The traditional honoring of the birth of the Prophet Mohammed (Milad‐un‐Nabi) has shifted in numerous Indian cities from private prayer and ritual meals in the home to grand public festivals that bear resemblances to Hindu religious processions. In 2010 in the southern Indian city of Hyderabad, large‐scale Milad‐un‐Nabi festivals became implicated in Hindu–Muslim nationalist riots that erupted weeks later at the commencement of a Hindu festival for Hanuman Jayanthi. This paper explores the political production of Muslim ethno‐nationalism and the intra‐community debates over the legitimacy and piety of Milad‐un‐Nabi celebrations. It argues that Milad‐un‐Nabi as a public performance is a (re)invented tradition that is part of the struggle for material, political and symbolic goods of the nation‐state. It is shaped by local party politics and history of anti‐Muslim discrimination. However, as the festivals highlight community divisions and religious ambiguities, they ultimately reveal the fragility of ethnic groups.