The religion Islam offers complete code of life. It throws light on each and every aspect of human behaviour. It is based on two ultimate sources: The Holy Quran and The Hadith. Both the sources have played an important role in the establishment of code of conduct. Throughout the history the scholars of the ancient and the modern times have played an important role to make them understandable. We have seen especially in Madaris where these two sources were taught thoroughly. And the relationship of the Quran and Hadith was also discussed finalized. In this article Hadith and its Principles is our subject of discussion. How it were taught and addressed in the area of Multan. A critical analysis is also offered on the sources of Hadith and its Principles. At the end some conclusion is also drawn.