In the post-9/11 world, the current US counterterrorism efforts in the Af-Pak region and the terror attacks on Indian cities have prompted India and the US to cooperate more closely on counterterrorism concerns. However, this counterterrorism cooperation is not commensurate with the comprehensive Indo-US strategic partnership. This apparent lack of cooperation plays out in their approach toward terrorism and bureaucratic impasse. India and the US need to make use of the trust and confidence that they have built in their bilateral relationship, readjust their perspectives on the threat of terrorism, understand each other’s core national security interests that shape their respective anti-terrorism goals, and make counterterrorism an important module in their ‘strategic partnership’ to tackle terrorism at the domestic, regional and global levels.