The root cause of terrorism is the political interpretation of Islam. The solution to this issue is to re-engineer the minds of extremists by countering the ideology of violence with the ideology of peace based on Islamic sources. The ideology behind present-day terrorism is that Islam is a political system, and all Muslims are duty-bound to establish Islamic rule in the world. This thinking was not prevalent during the time of the Prophet Muhammad. It is an innovation of the last few centuries and has spread in the Muslim world today. Certain Muslims, especially youth, have become obsessed with the ideology and are trying to establish the political rule of Islam, thinking it to be their ticket to paradise. Failing to achieve this objective by the peaceful method, they have started resorting to suicide bombing, thinking that if they cannot eliminate the non-Islamic rule, they can at least de-stabilize it and pave the way for Islamic rule. This political interpretation of Islam has no basis in Islam; It is a later innovation. Fundamental Islam is based upon peace, compassion, and tolerance. The ideology of violence can be countered by the Islamic ideology of peace, as exemplified by the prophetic method of negotiating the Hudaybiyya Peace treaty. In this treaty, Prophet Muhammad unilaterally accepted all the conditions of his opponents, without receiving justice or his rights, to enter a 10-year no-war pact. The peace and normalcy thus obtained allowed him and his companions to work uninterruptedly on a constructive programme. Using this peaceful non-political programme, they consolidated themselves so thoroughly that they acquired Makkah peacefully without waging war. The root cause of terrorism is the political interpretation of Islam. Its solution is to present the Islamic ideology of peace. When people of extremist mindsets understand that Islam is a religion of peace and the political interpretation of Islam has no basis in Islam, they leave violence on their own and start working on peaceful lines.