Germany faces an existential crisis. The leading country of the European Union welcomed the avalanche of refugees from West Asia and North Africa. A record number of asylum seekers exceeding one million descended upon the richest country in Europe last year. The key country at the heart of Europe today is split on the issue. The rapid rise of the right-wing parties and movements there has polarised the society, which is symbolic of similar split across Europe. This study delves into the details of the dynamics that is still unfolding. It focuses on the problems that Germany is facing from the refugee crisis and related terrorism. It discusses the opinions of prominent publicists and political leaders on the dilemma. It brings to focus the tools, both hard and soft, that Berlin is using to manage the massive problem that threatens to tear German society apart. Besides, it compares the experience of India whenever appropriate. The volume also attempts to lay bare the factors that are responsible for influencing the youth to opt for terrorist ideology.