Wasatiyyah approach is a methodology of approach that exists in Islam for use in practicing Islam in a balanced way and in all aspects of the field in life at the level of individual, community or leadership. The purpose is to improve the quality of life of the ummah in various aspects such as economy, education, politics, preaching (da’wah), unity, finance, law, nationhood and many other aspects that can be discussed and refined. Violence is the act or behaviour of an individual or group against human instinct. Typically violent activities are done to achieve something by force or to fulfil the desire to have something inaccessible in a good way. This chapter aims to analyse and discuss the issue of terrorism in Malaysia as well as its methods of handling it through wasatiyyah approach. It aims to produce generations that are free from radical nature in creating a developed and harmonious nation. The concept of wasatiyyah is an effective mechanism to be used as a guideline to control the ideology of extremism and terrorism among Malaysians.