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Terrorism as an act of violence involves a vast and multi-factorial network of sociopolitical causes. Yet this choice of action corresponds to another form of social violence. As psychologists, we can try to explain the consequences of terrorism, the reasons why terrorist groups always seem able to recruit new people for their purpose. It is also, perhaps, the link between these two issues which is even more interesting to explain. This paper offers a short review of past and contemporary hypotheses and research on terrorism in the field of psychology. More generally, this review considers international terrorism mainly perpetrated by radical Islamist fundamentalists. We will focus here on recent studies proposing that identity and, more specifically, social identity could be important factors in terrorism. Within these studies or reports, some point out the importance in contemporary terrorism of the threat that Western countries impute to Muslim and Arab identity. As a conclusion, and in line with other authors, we introduce an integrative analysis framework for a vicious terror circle which begins with fear and threat, leads to the derogation of Muslim population in Western countries, and produces a fertile ground for the recruitment of terrorist sympathizers.