This paper presents the evolution of cyber defense in NATO and proposes to use this as a reference model in the development of national capabilities in South Eastern Europe (SEE), as well as establishing regional project-based cooperaiton. Similarities between the different areas of cyber defense and counter-terrorism are used to propose approach to fight terrorist activities in cyber space. Academic support for cyber defense and counter-terrorism, using Basic Environment for Simulation and Training (BEST) – Cyber is described with defining the development of a model for SEE cooperation around this environment.