For a long time, NATO paid no attention to the phenomenon of terrorism. Theattacks on September 11, 2001 spurred the Alliance to speedily adopt a number ofremedial measures. Due to its restricted membership, legal limitations, institutionalfeatures, mode of decision-making and almost exclusively military capabilities, NATOis not well-suited to effectively counter the threat of transnational terrorism. TheAlliance’s contribution may however be increased through internal improvements,enhanced consensus among allies and closer cooperation with other internationalorganisations and regional bodies including UN, EU and OSCE. The nature ofterrorism demands a global coalition, radically different designs for securitystructures and the use of predominantly non-military instruments. The global "war onterrorism" has not been won and its intermediary results look inconclusive at best. TheAlliance cannot play a central role but could constructively contribute to thisendeavor