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Pakistan has been facing this menace of terrorism since its inception. It has deteriorated each and every fabric of the society. This problem has become directly and indirectly reason for the current dismal situation of Pakistan. It has lasted its effect on Governance, and increased psychological fear within public. The study aimed to analyze the impacts of terrorism on psychological well-being. A sample of 300 respondents selected through multi-stage sampling from Khyber Pakhtunkhwa (KPK). The educational institutes were selected through simple random sampling students were taken according to the strength of these institutes through stratification and data was collected by convenient method. The analysis showed that the development of country was suffering a jolt by terror attacks. In the current study it was concluded that the nerves of people had become weak and the level of endurance had also become weak. The power of making decision and handling situation in people had destroyed they were unable to combat the serious situation of their daily life. It had increased anxiety, depression, stress, and uncertainty in society. People did not feel comfort and secure in society even in their homes. This study revealed that the cognitive functioning of people had shattered. They had become rigid and anxious in every situation of their daily routine of life.
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