Terrorism in Jammu and Kashmir has become one of the most challenging problems for Indian democracy. Its manifestation can be seen in the endless cur fewer in the valley, myriad protests by the locals, the brain-washing of local youth and their increasing inclination towards stone – petting or defying the government. Article 370 has given special status to J & K implying it is not bound by the same rules as that of other state. This paper focuses on describing and analyising the challenges posed by Terrorism in J & K and their aftermath and effect on Indian democracy. Some of the challenges include loss of lives/increasing death-rate, unrest and violence, effect on educational institute, alienation and political unrest.