This article explores reality of issues in terrorism, and the misconceptions, stereo-type and frame up of Islam. It traces the nature of Islam and muslims, us and the western negative stereotype of Islam in relation to terrorism, and uncovers the causes of terrorism in the world. This study used secondary and historical documentation sources of data collection, reviewed related literature and qualitatively analysed the data. Accordingly, it is not possible to end or optimally contain the terrorists and terrorism by merely making policies, framing up others, and or mere states cooperation. Rather, the root causes of terrorism must be objectively understood and curbed, and the foreign policy of the states, especially us and the west must be redesigned to minimise external intervention in other states and religious affairs. The world would continue to experience acts of terrorism despite all the measures put on ground unless the root causes of terrorism are uncovered and fully addressed. More individuals, especially the youth and across religious divide are likely to be engaged in terrorism, including suicide bombing because of the negative indoctrinations, and multi-dimensioned injustice to many individuals, states, and religions. The article concludes that Islam neither accepts nor harbours terrorism; associating Islam with terrorism is as a result misconception, deliberate frame up or negative stereo-type. The solutions to terrorism in the world lie in dispensation of justice to all, objective foreign policies making and implementation, non-interference in other states’ affairs, sound religious and inter-faith education, alleviation of poverty and unemployment, objective image projection and proper information dissemination.