The regional terrorist threat remains high on the list of Australia's national security priorities. It is time to take stock of the regional security environment and to ask how the Southeast Asian terrorist threat might evolve in the future. This report, authored by Peter Chalk and Carl Ungerer, analyses the changing nature of religious militancy and sets out a framework for understanding the forces and trends that are driving jihadist extremism in the region. A number of policy recommendations are made on the appropriate next steps in Australia's regional counter-terrorism strategy.