Corruption and Terrorism are burning issues for mankind especially in developing economies. Both these issues are big threat for national security. These core issues are accelerated in the presence of poor institutional performance. Corruption and Terrorism is not only major obstacle in the way of growth, development and economic activities in developing countries it also harness the trust of the people in the institutions and government of the state. Institutions are the main apparatus to minimize the Corruption and Terrorism by efficient performance. In order to test the relationship between corruption, terrorism and institutions panel data technique is used. The time span of study is 2005-2020. It is found that in the presence of well-functioning economic and political institutions corruptionand terrorism is minimized.