In spite of the twenty-first century being an era of information and communication which make accessing authentic texts easier, it is very unfortunate that there still exist many misconceptions regarding Islam. One of such misconception is the issue of terrorism. Naturally, any misconception has roots somewhere and when it comes to modern day terrorism linked with Islam, it is an ideological group historically known as Kharijites who caused serious confusion among Muslims and between Non-Muslims. This paper examines the creeds and principles of the early Khawarij, how they influenced modern day extremist groups like the Boko Haram in Nigeria and why they have deviated from traditional mainstream Islam. Islam is a religion ordained by Allah which has been erroneously aligned with terrorism and numerous conflicts around the globe since the September 11, 2001 attacks in the USA. While Islam does not encourage these actions, there exists movements within the Muslim community which use forcefulness as a means of political expression similar to the early extremist Khawarij sect who abused the concept of takfir. The new brand of Khawarij and their likes the Boko Haram in Nigeria seem to have adopted the main tenets of the Khawarij creed and as a result, carrying out acts of violence under the guise of Islamic jihad. The paper suggests that there is the need for further study on the ideological roots of these groups, their actions, and how society proffer solutions to combat their ideas before they degenerate into terrorist actions.