"We need scholarly refutations to claims that Prophet Muhammad incited the killing of men and women," he stressed.
"This should be done in several languages to reach all those who do not know the truth about the prophet of mercy."
The prominent Muslim scholar also urged political responses.
"Heavyweight Muslim countries should have a manly stance in defense of Islam and its prophet," he added. "The peoples need to pressure their governments to take such a stand and prove to the world that the Muslim Ummah is still alive."
Sheikh Qaradawi also underlined the need for artistic and media responses.
"Movies and TV shows play an important role in clarifying the true image of a much-stereotyped Islam."
Two young Dutchmen, Ersin Kiris and Vincent van der Lem, have already released a counter film on Youtube and MTNL.nl (official website of the Multicultural Television in the Netherlands).
It seeks the borders of freedom of expression and attacks Wilders with his own weapons.
Sheikh Qaradawi said the response is boycotting the products of countries that allow its citizens to bash Islam.
The Dutch government has reportedly distanced itself from Wilders views and tried unsuccessfully to convince him not to broadcast the film.
Recognizing that under the Dutch law and constitution it could not prevent the film release, it had vowed to review its content once made public.
"The government will investigate whether Mr Wilders has committed a criminal offence; the Public Prosecution Service will decide about prosecution."
Sheikh Qaradawi, the president of the International Union for Muslim Scholars, regretted that many Muslims project a distorted image of their religion though their wrong understand of the Qur'an.
"We ask them to better understand the Islam's message of peace, mercy and human brotherhood," he added.
"We also hope that non-Muslims will get a chance to know the truth about Islam which only wants peace and prosperity for mankind."