Muslim leaders called on the police to explain why an Asian man was shot dead at Stockwell station.
The Muslim Council of Britain said Muslims were concerned there was a ?shoot to kill? policy in operation.
A spokesman said Muslims he had spoken to were ?jumpy and nervous?.
Inayat Bunglawala said: ?I have just had one phone call saying ?What if I was carrying a rucksack??.
?It?s vital the police give a statement about what occurred and explain why the man was shot dead.
?There may well be reasons why the police felt it necessary to unload five shots into the man and shoot him dead, but they need to make those reasons clear.
?We are getting phone calls from quite a lot of Muslims who are distressed about what may be a shoot to kill policy.?
He said in the current atmosphere Muslims were very afraid and other people were looking at them in a very suspicious manner.?
Earlier Muslim leaders called on the Government to acknowledge the role played by the war in Iraq in the radicalisation of some of its youth.
The Muslim Council of Britain said it was an important factor which contributed to a sense of disenchantment among some youngsters.
Inayat Bunglawala said the Government must not ignore the part played by the ongoing conflict.
He said: ?There is no doubt that Iraq is an important factor in the disenchantment we have seen among some Muslim youths.
?There are also other factors to do with unemployment, under-achievement in education, religious discrimination - a feeling that their faith is being demonised continuously.
?It?s about time the Government acknowledged, that the Government must not completely ignore the Iraq factor.?
Shahid Butt, marketing manager for The Muslim Weekly newspaper, said he believed the threat to Britain would reduce if it pulled its troops out of Iraq.
He said: ?At the end of the day, these violent incidents are going to happen if current British foreign policy continues.
?There?s a lot of rage, there?s a lot of anger in the Muslim community.
?We have got to get out of Iraq, it is the crux of the matter.
?I believe if Tony Blair and George Bush left Iraq and stopped propping up dictatorial regimes in the Muslim world, the threat rate to Britain would come down to nearly zero.?