The conducted independent research on Causes and Impact of Terrorism in Swat Valley (2007-2017). The author analysed the History, causes and consequences of Terrorism in Pakistan especially in Swat Valley. Terrorism is universally contested concept with varying understanding in different regions of the world. Its conceptualisation in developed countries and developing countries is different in essence of perception and operationalisation. This study attempts to explore the genesis of terrorism generally in Pakistan and Swat valley in-particular. It explores the causes and major driving forces of terrorism and the factors which contributed its spread because of social fault lines. The menace of terrorism had been globalised in the wake of 9/11 which led US to initiate global war on terror but its implications on Pakistan was triggered by US invasion of Afghanistan and contributions of Pakistan in this regard. The global geographic attraction of Pakistan makes it vulnerable to any critical development in the world by default.