Moderate Islam has been emphasised in Western counterterrorism praxes. In what ways are the Islamic perspective on moderation incorporated into these praxes? To explore this question, the paper adopts decoloniality as its analytical framework and uses an interdisciplinary approach combining Critical Security Studies and Islamic Studies. Relying on critical analyses of secondary counterterrorism discourses and practices as well as key primary Islamic sources, the paper explores the Islamic concept of wasaṭiyyah (moderation), which forms the foundation for promulgating ‘moderate Islam.’ In essence, moderation in Islam is positioned as the middle path between the two opposite margins of ghulūw (extremism) and ghaflah (negligence). Although moderation as understood through the Islamic perspective requires the maintenance of an impeccable balance between both margins, Western counterterrorism praxes place more weight on extremism (ghulūw). Such fragmental conceptualisation and application of moderation in Islam substantially diminishes its efficacy in mitigating terrorism and violent extremism.