Peace psychologists emphasize the importance of recognizing both direct and structural bases of peace and conflict. In the peace psychological analysis of terrorism presented here, I attempt to further our understanding of the bases of terrorism in the context of how inequities in political, economic, and social structures may feed into or exacerbate terrorism. I analyze the effectiveness of responses to terrorism in terms of the tripartite peacekeeping, peacemaking, and peacebuilding model of nonviolent response to violence.