Terrorism is a worldwide phenomenon, as the Global terrorism index reveals. The aim of terrorism is to take command over our feelings and our imagination to compel us to change our ways of life and release a clash between civilizations. In my discussion, I will concentrate on identity, an individual’s feeling of being unique, having a coherent self while at the same time being part of a large group. My intention is to link the concept of identity to affects and thinking and the loss of reality-testing when the group is dominated by schizo-paranoid anxiety. Two lines of thought stand out in my discussion of terrorism – the power of identity and the search for meaning – both of which are affected by globalization, the rise of a network society, and disenchantment with the world.