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The emergence of the Islamic State posed a serious security threat internationally following years of instability in Iraq and Syria. The core leadership of the group remains in Syria and Iraq with a bolstered network of affiliates. The apocalyptic Islamic State’s ideology and its radical objective continue to be worrisome. This study examines the origins of the Islamic State grounded on contemporary terrorism and security threats posed by its dissemination of Islamic extremism in a move to create and expand its territory. A qualitative methodology was employed through a descriptive research design and informed by secondary and primary sources of data. It is revealed that a clear post-Iraq war peacebuilding strategy could have avoided strife due to sectarianism. There is a need to shut financial and economic conduits in order to effectively cut down the activities of the Islamic State, aside from the military interventions.