The Bishop of London, the Rt Rev Richard Chartres, praised vicars in the east end of London, which has a largely Bangladeshi Muslim population, who grew facial hair.
He indicated that the current fashion for beards helped the Church form links with local communities.
Writing in the 'Church Times', he said the vicars in Tower Hamlets, east London "represented a new way to (connect with)the culture of the majority of their parishioners".
The Bishop wrote: "Beards are no longer confined to those excoriated by their opponents as 'trendy lefties' and websitesoffer a gallery of suggestions for the modern male of all ages".
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One of the priests complimented by the Bishop - the Rev Adam Atkinson, Vicar of St Peter's church in Bethnal Green - said he was encouraged to grow his beard as "an icebreaker".
"It is an icebreaker - St Paul said 'I become all things to all men that by all possible means I might save some'. In our area there are three main groups, the poor, the 'cool' and the Muslims and beards cover at least two groups reasonably well," the priest said.