Muslim Australians believe that prevailing media attitudes towards them and their religion, Islam, disadvantages them both economically and socially. The Western media is alleged to have aggravated anti-Muslim sentiment since the 1990–1991 Gulf Crises, and after September 11, 2001 and the Bali tragedy in 2002, effectively divided the world into the Muslim terrorists (“evil”) and the civilised Christians (“good”). Within the framework of national interest and security, this paper examines whether Muslims' allegation of media bias is valid. If so, then, it will address the question, why is the media demonising this group of people, and who is to blame for this phenomenon—the media, its audience or the militant Islamic groups? This paper is based on primary and secondary sources including oral testimonies.