Chapter 7 discusses ethical problems faced by contemporary counter-terrorism measures. The discussion is primarily focused on reactions of states to sub-state terrorism broadly understood. There is an initial discussion of whether, and in what circumstances, terrorists should be treated as combatants or criminals and the bearing of this upon military and non-military forms of counter-terrorism. Problems with military responses connected with the inflammatory slogan “the war on terror,” including “targeted killing,” are also discussed. Thereafter, the chapter deals mostly with non-military responses and their moral and political hazards. These are examined under the three categories of: (1) legal and regulatory measures; (2) diplomatic measures; and (3) measures to remove the grievance. Under (1), difficulties connected with legal definitions of terrorism, and their tendency to promote abuses of civil rights, are explored; under (2) and (3) the path of political diplomacy is supported, but obstacles to its success in practice are discussed.