Terrorism is one of the most defining issues affecting social and economic lives in postmodern age. Does it affect public administration? Findings indicate that terrorism affects public service and causes various side effects. Lack of coproduction between public employees and citizens is a significant effect of terrorism. Similarly, public programs, strategies, and public servants' discretion are also affected. Law enforcement and safety and security services become the main concern for public service, leading to budget decreases for other governmental services. Accordingly, this negatively influences production and provision of certain services and goods as well as capacity of public organizations to implement different programs. Accountability in public sector becomes problematic since bureaucratic power increases asymmetrically. Finally, many high qualified public officials hesitate to work in terror-experiencing regions and this decreases quality of public service and causes personnel problems.