The law of the land will prevail in the case of Musharraf, Sharif told a news conference at his residence here when he was asked by reporters about the former dictator's plans to return to the country to contest the upcoming general election on May 11.
"The law, Constitution and courts are there. If there is anything illegal or unconstitutional, they will take notice," said Sharif, whose government was ousted in a coup led by Musharraf in October 1999.
Sharif said he believed no one should be forced to go into exile or to leave the country.
"No one should be arrested and jailed, or go into exile, or be sentenced to hang or forced to flee (Pakistan). This is our country and the Quran says no one should be forced out of his home," he said.
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The PML-N chief's remarks were in marked contrast to his earlier demands for action against Musharraf for ousting his government and for imposing an emergency in late 2007.
Arrest warrants have been issued for Musharraf by several courts in connection with civil and criminal cases, including the killing of Baloch leader Nawab Akbar Bugti in a 2006 military operation.
Musharraf left Pakistan in early 2009, months after he was forced to step down as President.
He has announced that he intends to return to the country on March 24 to lead his All Pakistan Muslim League party in the polls to be held in May.
If the PML-N and the Pakistan People's Party are unable to forge consensus on a caretaker premier, the matter should be sent to the Election Commission according to existing rules, he said.