The UKIP leader is accused of attempting to exploit yesterday's brutal massacre, in which 12 people were shot dead, and this morning's shooting in which a policewoman was killed, to gain the political upper-hand.
He claimed what happened in Paris could be put down to failed "multiculturalism" or what he called "having a fifth column living within these countries."
But Labour MP Tessa Jowell hit back by describing his comments as "sickening" and saying the murders were caused by criminals and not failed government policies.
Deputy Prime Minister Nick Clegg also said Mr Farage is just using the bloody murders to "make political points."
PADeputy Prime Minister Nick Clegg during the Call Clegg show, on LBC 97.3 radioPoint scoring: Nick Clegg accused Mr Farage of using the terror attack to his advantage
Mr Farage told Channel 4 News: "There is a very strong argument that says that what happened in Paris is a result - and we've seen it in London too - is a result I'm afraid of now having a fifth column living within these countries.
"We've got people living in these countries, holding our passports, who hate us.
"Luckily their numbers are very, very small but it does make one question the whole really gross attempt at encouraged division within society that we have had in the past few decades in the name of multiculturalism."
PANick Clegg and Nigel FarageExcuse: Mr Farage appeared to blame the shooting on failed multiculturalism
Later, he told LBC Radio: “We in Britain, and I’ve seen evidence in other European countries too, have pursued a really rather gross policy of multi-culturalism.
"We have encouraged people who come from different cultures to remain within those cultures, and not to integrate fully within our communities.”
Labour MP Bill Esterson said: "These comments are crass and unacceptable at a time when our thoughts should be with the families and friends of those who were murdered and with those who were injured.
"UKIP is cynically exploiting an appalling terrorist attack, which resulted in the loss of 12 lives, to make gross political points while fanning the flames of hatred.
"Their comments are an absolute disgrace and do nothing but encourage prejudice and bigotry.
"This is a time for cool heads and a measured look at how we keep our country safe. These comments won't do that and instead will incite hatred."
Mr Clegg said: "I’m dismayed that Nigel Farage thinks that on the back of the bloody murders on the streets of Paris yesterday, his first reflex is to seek to make political points.
“If this does come down to two individuals who have perverted Islam for their own bloody ends, the greatest antidote to the perversion of that great world religion, Islam, is law abiding British Muslim themselves.
“To imply that British Muslims, who I know are fervently British yet also proud of their Muslim faith, are somehow part of the problem not part of the solution is grabbing the wrong end of the stick.”
Mirror UK