In the age of mass communications, the role of the news media cannot be separated from acts of terrorism. To talk about the psychological effects of terrorism is to talk about the psychological effects of terrorism as reported by the news media. Terrorism is aimed at the people watching. By carrying out inherently dramatic, deliberately shocking acts of violence, terrorists hope to attract attention to their causes and project themselves as forces to be reckoned with. To reach their audience terrorists depend on the news media. This sometimes puts the news media in the uncomfortable role of appearing to be an accomplice to the terrorist and has led to allegations that by their reporting the media exaggerate the problem of terrorism, spread alarm and provoke overreaction, aggrandize and romanticize the terrorists, even bestow a degree of legitimacy upon them, and inspire others to become terrorists. A closer examination of these assertions shows some of them to be at least partially correct. But some surprises also appear. Do the news media provide too much coverage of terrorism and thereby exaggerate its significance? By giving incidents of terrorism enormous coverage, do the news media encourage acts of terrorism? This paper discusses these issues and the psychological effects of media coverage of terrorist incidents on the public.