For a long time NATO paid no attention to the phenomenon of terrorism. The attacks on 11 September 2001 spurred the Alliance on to speedily adopt a number of remedial measures. Due to its restricted membership, legal limitations, institutional features, mode of decision-making and almost exclusively military capabilities NATO is not well-suited to effectively counter the threat of transnational terrorism. The Alliance's contribution may, however, be enhanced through internal organisational improvements, enhanced consensus among allies and closer co-operation with other international organisations and regional bodies including UN, EU and OSCE. The effective struggle against terrorism requires a global anti-terrorism coalition, radically different designs for security structures and the use of predominantly non-military instruments. The ‘war on terrorism’ has not been won and its intermediary results look inconclusive at best. The Alliance cannot play a central role but can constructively contribute to this endeavour.