Public bodies in the UK had too often ignored or condoned divisive or harmful religious practices for fear of being called racist, the Casey Review said.
Immigrants should take an "integration oath" and there should be more emphasis on British values in schools, it said.
Communities Secretary Sajid Javid said he would study the findings "closely".
Dame Louise Casey's review into the integration of minorities was commissioned by former prime minister David Cameron as part of the government's efforts to tackle extremism.
She warned there was a growing sense of grievance in some parts of the Muslim community.
She highlighted the plight of women who found themselves marginalised through poor English language skills while being subjected to "coercive control, violence and criminal acts of abuse, often enacted in the name of cultural or religious values".
Muslim areas under the spotlight - BBC political correspondent Ross Hawkins
Afraid of being dubbed racist, afraid of losing support, afraid of challenging minority communities - that is Dame Louise Casey's view of Britain's decision-makers.
Criticising politicians and officials is the easy bit. The significance of this report is that it targets individual communities and faiths.
It contrasts with the language of people living "parallel lives"- a term used in an earlier report and designed to be neutral, placing no more blame on one community than another.
Dame Louise makes clear her outrage at what she calls "regressive practices" targeting women and girls. She accepts she is putting Muslim areas under the spotlight.
The question for Dame Louise - an official not immune to criticism herself - is how would she achieve change? What if an elected politician refused to take her oath? What if some people - of whatever community - simply prefer to live and educate their children separately?
Researchers heard Muslim tribunals had made life-changing decisions with no training, leaving women and children often feeling traumatised.
Mosques often gave women and girls regressive advice about lifestyle and clothes, Dame Louise added.
She said too few leaders had dealt with issues, suggesting some fear being labelled racist or losing support in minority communities.
Dame Louise spoke to 800 people for her review, including public servants, religious representatives, teachers, pupils and local leaders.
She said there were areas which were struggling to cope with the pace and scale of change they faced as a result of immigration, while there were still large social and economic gaps between different ethnic groups.
Division between communities had been bad for Britain, leading to poorer social and economic opportunities for some groups, she added.
The report made 12 recommendations, including:
A programme of projects to boost cohesion, such as local IT courses and sport activities for children
Councils should regularly collect statistics on hate crime or deficiencies in English
Government and councils should share their approaches to tackling segregation
Schools should promote British values to help build integration, tolerance and citizenship
A review of the "rights and obligations" of immigrants likely to settle in the UK
New immigrants could have to swear "an oath of integration with British values and society"
Funding for school projects that encourage children of different backgrounds to mix
On top of English language classes for adults, special classes to tackle any "cultural barriers" to a person's employment prospects
More funding for local English language classes and a review of whether courses are reaching people who need them
Councils should investigate whether their housing policies help or hinder integration
Better checks when children are removed from mainstream education
New oath for public office-holders pledging "tolerance of those with different faiths and beliefs"
"We need more effort to be put into integration policies to help communities cope with the pace and scale of immigration and population change in recent years," Dame Louise said.
"Nowhere near enough emphasis" had been put on integrating communities, she added.
Mr Javid said Britain had "long been home to lots of different cultures and communities", but added that "all of us have to be part of one society".
While it was right to celebrate the "positive contribution" diverse groups make to British life, nobody should be excluded from it or left behind, he said.
"We need to take a serious look at the facts and must not shy away from the challenges we face.
"Dame Louise's report is a valuable contribution, and I will be studying her findings closely."
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