Understanding meaning of "كل بدعة ضلالة"

Those who interpret meaning of Hadith, ‘kullu biddatin dalala’ of Abu Dawood as "Every innovation is misguidance" is unfounded for two reasons.

Firstly, In Linguistic this hadith is similar to the hadith related by Tirmidhi*  which states, كُلُّ عَيْنٍ زَانِيَةٌ    which clearly does not mean: "Every eye gazes the look of the adulterer" rather it refers only to those eyes which are guilty of the forbidden (adulterer) look. The person blind since birth would surely not have the forbidden look, and it is known the Prophets would never commit such an abject sin, plus Aulia and saleheen are saved from such sins. [*Tirmidhi, Book of manners, 2786]

Similarly, Quran states in Surat al-Ahqaf: (تدمر كل شىء [46:25]) which means the violent wind Allah sent as punishment to the people of ^Ad demolished all those who disbelieved and their properties apart from there dwellings. Here the word kul again does not refer to everything but only to the people of Ad who disbelieved and not all the things like trees, animals, skies or the mountains etc were demolished.

In both cases the kul is referred with exception, although it can mean "every" it does not mean this in all cases nor can the term be applied for everyone without any discrimination.

Secondly, this interpretation would negate the sahih hadith related by Imam Muslim which specifies two types of innovations: the innovations of guidance and the innovations of misguidance [Gist Muslim 34/6466] and many other traditions where there has been several praise worthy innovations such as compilation/divisions/punctuations of Quran, second adan for Juma, tahiyatul wudu, congression of taraweeh, praying nafil before execution and so on.

In the same way, the Hadith here does not refer to every innovation but only to those innovations which are not in harmony of Islam. In the rules of the Religion it is not permissible to interpret two things in contradiction to one another or in isolation. Rather, the meaning have to be reviewed in light of principles and teaching of Quran & Sunnah.