This IZA paper estimates the impact that Britain's July 2005 bombings had on the labor market outcomes of UK residents who are either Muslim by religious affiliation or whose nativity profiles are similar to the terrorists. The authors find a 10 percentage point decrease in the employment of very young Muslim men relative to non-Muslim immigrants accompanied by consistent declines in real earnings and hours worked. We need to minimize these potential impacts, for discrimination and futureless situations are the cradle of terrorism.