As we approach the 21st century, as the superpower nation of the world, the United States must be prepared to combat the emerging threat of domestic terrorism, a threat that will be employed by both international and domestic terrorist organizations. In anticipation of this, our response to domestic terrorism must incorporate a positive, proactive, and comprehensive program that identifies terrorist organizations and their threat capability, prevents them from committing attacks if possible, yet allows us to respond in a prepared manner, once an attack has occurred. This can be accomplished with an effective counter-terrorism policy that addresses both offensive and defensive measures. This project will focus on terrorist, our efforts to counter terrorist activities, their threat capability, our response, both military and civilian, as well as preparedness. Hopefully we can answer, "Are we really where we need to be, and if not what must we do to get there?"