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Islam-phobia is undoubtedly the result of sustained systemic propaganda that links irrationally between terrorism and jihad, simply because acts of terror are connected to some individuals or groups who belong to Muslim communities. Accordingly, to examine the hypothesis of the distinction between Jihad and terrorism, this paper thoroughly scrutinizes these two concepts and highlights their main characteristics, aims, and uses. As the main aim of this paper is to correct the bad image about jihad in Islam, this paper will draw on primary evidences to demonstrate the differences between the concepts in terms of the Qur’nic meaning and aims of jihad. This paper concludes that the distinction between jihad and terrorism is like the distinction between the sunrise and the sunset, the first leads to light and life and the second leads to darkness and destruction.