Libya occupies a visible position with respect to international terrorism and has since the violent overthrow of the Ghaddafi regime held an insecure future for itself with threatening uncertainties for its neighbours. For about three decades during the Ghaddafi rule, Libya was perceived as a state sponsor of terrorism, that is, state actor that deploys acts of terrorism as instruments of foreign policy. In this regard, Libya provided safe haven, funding and logistical support to counter-state groups involved in terrorism. The 1988 Lockerbie bombing marked the crescendo of Libya’s alleged involvement in terrorism as the Ghaddafi regime initially expressed reluctance to extradite two Libyan nationals suspected of involvement, for international trial until the United Nations Security Council (UNSC) imposed far reaching sanctions that compelled Tripoli to succumb to international demand and pressures. Yet, the violent collapse of the Ghaddafi regime and accompanying absence of strong central authority that lacks effective sovereignty over the country’s vast and largely underpopulated territory has put Libya at a crossroad. The consequence is the emergence of various counter-state groups competing with the hybrid structures of governance in such a manner that Libya has become a threat to itself and surrounding neighbours.