This article examines terrorism conducted in the name of Islam from the perspective of the maqâshid al-sharî’ah juridical theories. Following the September 11, 2001 attacks on US soil, other acts of terrorism have increasingly spread. The perpetrators of such acts use the concept of jihad to legitimize their actions through religious texts, thus reinforcing the negative perception that Islam actively encourages terrorism. This study, which is based on library research, seeks to demonstrate that terrorism causes much more harm (madharat) rather than good (mashlahah) by cultivating a poor image of Islam. There are three standard categories where jihad can possibly bring benefits: i) the maqâshidâmmah, which promotes justice and freedom; ii) the maqshidkhshshah, which relates to fulfilling human rights; and iii) the maqâshid juz’iyyah, which coversspecific goals like fighting oppression, protecting people, and eliminating disbelief. Terrorism is related to Islamic belief through the application of jihad ghairumuq tadhâ al-hâl, which does not match the situation. Furthermore, when extremists fully understand the concept of jihad muqtadhâ al-hâl, namely jihad when it is demanded by the situation, they should refrain from pursuing acts of terrorism that they believe to be jihad fi sabilillah (jihad in the name of Allah) but which in reality bring negative attention.