The biblical Tabernacle (mishkan), originally conceived as a physical sacred space, underwent a radical reinterpretation in Hasidic thought that transformed it into an internalized divine dwelling. Through textual analysis of midrashic, kabbalistic, and Hasidic sources, alongside Sufi mystical literature, a clear evolution emerges of this pivotal shift in Jewish spiritual understanding. Early Hasidic masters, led by Yaakov Yosef of Polnoye, reimagined the Tabernacle commandment not as instructions for building a sanctuary, but as a blueprint for individual spiritual preparation. This interpretation positioned the human heart and body as the ultimate vessel for divine presence, a concept further developed through elaborate homiletical frameworks by masters like Avraham Yehoshua Heschel of Apt and Elimelekh of Lzhansk. The roots of this transformation trace back to sixteenth-century Safed, particularly to Moshe Alshekh's commentary emphasizing divine indwelling within human beings. Notably, this development shows striking parallels with Islamic mysticism, especially Rumi's conception of the heart as the "real mosque," suggesting significant Sufi influence. These findings reveal that Hasidic internalization of sacred space emerged not in isolation, but as part of a broader cross-cultural mystical dialogue, supporting Abraham Joshua Heschel's assertion that "no religion is an island." This transformation exemplifies how mystical traditions can transcend religious boundaries while preserving their distinctive theological frameworks.