Religious terrorism is simply categorized as a type of violence in which religion is used as a basic tool or justification by individuals or groups for achieving their illegal, immoral and unlawful goals through the means of terrorist activities. Carrying out terrorism in the name of faith has long been a prominent aspect of human affairs. Religious terrorism can be explained as well as one’s understanding of the term terrorism. It is commonly said that no religion in the world incites its believers to carry out terrorist attacks but it is also an undeniable fact that religion is still being misused by clerics and other religious identities as a tactic for the sake of their agendas. The perspective of western media and the public is also confusing the things as sometimes it seems that every religious person is a suspect of terrorism which is continuously causing unrest amongst peaceful peoples. A clear understanding must be there in minds of people regarding the difference between Jihad and Terrorism. This paper explains some important aspects related to religious terrorism.