International terrorism is a relevant and acute issue to deal with for most states across the globe. The horrors and fear of the 9/11 terrorist attacks in 2001 in New York and Washington left governments with new priorities and challenges to cooperate and coordinate efforts to combat terrorism. Governments in Southeast Asia have been faced with the threat of terrorism for several decades, although it has increased during the last decade. This case study sets out to trace and analyze terrorism in Southeast Asia from a neo-realist perspective. The first research question deals with the fact that the region is being referred to as the “second front” on the war on terror, or as a “terrorist haven”. Further, by using a neo-realist framework, an analysis of the situation and the actions of governments in the region will be provided. Finally, according to neo-realist theory, regional cooperation is only peripheral to the actual struggles of power and balancing that states are involved in. Yet the Association of South East Asian Nations (ASEAN) is arguably an actor in combating terrorism in the region. Therefore, one of the objectives is to analyze these initiatives and to provide reflections for further action.