History, in a simple sense, is a narration of events. Whereas the interpretation of history is related to the philosophy of history, that is, to discover those laws which are at work in the process of history. Various theories have been put forward in this regard, but all of them are based on human imagination. The correct interpretation of history is that which is in accordance with the Creator’s plan of creation about man. According to the creation plan, the creator did not create the present world in order to establish an ideal system at the collective level. It has actually been created for the purpose of testing human beings. That is why, God has given man complete freedom to everyone. Man has the choice to make proper use of his freedom or misuse it, to lead a life of righteousness or a life of wickedness. Therefore, an ideal system, at the collective level, at the level of whole humanity, cannot be established in this world. It is only in Paradise that an ideal system can come into being. The present world is in fact a selection ground of ideal individuals who will be found eligible to inhabit the ideal world of the Paradise in the Hereafter. Ideal individuals are being selected from every generation. For instance, in the first generation, Adam’s son Cain was rejected while his other son Abel was accepted. The same process has been going on throughout history. In every age and in every generation, God has been selecting deserving candidates while rejecting the undeserving. It is described in the Quran thus: “…a large group of the earlier people and a large group of those of later times.” (56:39-40) Once this desired list of accepted and rejected individuals is complete, the Creator of the universe will replace this world with an ideal world, that is, Paradise. Then the individuals who had been selected would be settled in this Paradise to enjoy a life free from fear and sorrow forever, whereas those who had been rejected would be thrown into the universal dustbin to live a life full of intense regret and remorse for all eternity.