This chapter explains how foreign policies intersect and interact with terrorism and counterterrorism. It considers core instruments of foreign policy and methods for countering terrorism. Examples include diplomacy and culture, economic statecraft, and the military. There is some evidence suggesting the use of military pressure can be quite effective in achieving specific policy objectives. However, the chapter also emphasizes how an interrelationship and interdependence between foreign policies and counterterrorism could hinder the fight against terrorism. The sub-divisions of countering terrorism are anti-terrorism, counter-terrorism, and consequence management. States must include compromise elements in their foreign policy in their direct dealings with other governments when it comes to countering terrorism.