Due to India’s hegemonic aspirations in South Asia, its presence and actions have often threatened its neighbouring states and garnered considerable anti-Indian sentiments. This paper highlights how terrorist groups in the region have exploited this sentiment as a rallying call for recruitment. Specifically, it looks at Pakistan and Bangladesh and discusses how contrasting attitudes of the two states towards India have generated/shaped anti India rhetoric among its populace. By analysing state policies, statements of terrorist group and the contextual/historical backgrounds of some prominent attacks, the paper demonstrates how identity threats, state support of radicals and a disdain of India’s treatment of its minority Muslim population is intertwined with growing recruitment by terrorist groups. It then examines if this dislike of Indian foreign policy may manifest itself in other south Asian countries.