Efforts to combat terrorism have become a priority in the security agenda of most countries around the world, while the respective policies, tools and instruments have amounted to significant costs. In this article, we review the literature on counterterrorism (CT) effectiveness and draw a series of rather negative conclusions with regard to the reliability of our knowledge in this area. We find that the literature displays case and data selection biases, and the results produced are oftentimes contradictory, mostly due to the use of different indicators. We then propose a conceptualisation of CT effectiveness, which should help to resolve some of the issues outlined. The article concludes by outlining some future research directions that should improve our methodological grasp in the field.