Nowadays disinformation and propaganda are very common in the world and Islam is the most targeted religion. This is largely due to underdevelopment of Muslims and therefore lack of effective mass media handling by Muslims. It is very unfortunate that today Islam is associated with terror nearly all over the world. So it is the duty and responsibility of Muslim academics to show through extensive research and studies that Islam is the religion of peace, and can not be associated with terror at all. In this article, which is entitled "Islam and Terror" we tried to explain this reality by relying mostly on the Qur'anic verses. Our holy book Qur'an describes terror as "mischief making". Through detailed examination of the subject the article also demonstrates why and how Islam detests and condemns terror?