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When media focuses its attention on the subject of terrorism, the country of Libya is not typically at the forefront of the discussion. However, Libya has had a deep hand in terrorism dating back to when Colonel Muammar Qaddafi took control of the country in 1969. During the years that Qaddafi was in control, he financially backed terrorist organizations, who repeatedly aimed their sights on the United States and their allies. Even after the fall of Qaddafi’s regime, terrorism is still a part of the governmental strategy in the country. The attack in Benghazi against an American compound, which resulted in 4 American deaths shows that terrorism is alive and well within Libya. In this analysis, I will show the history of Libya prior to the Qaddafi regime, and terrorism during and after Qaddafi’s regime. I will also show the connections between terrorism and the instability of the region following the fall of Qaddafi. The findings of this investigation, will inform the academic research, as well as the counter-terrorism efforts in Libya.