As its self–proclaimed Caliphate turns three, the Islamic State is suffering significant territorial losses. These swift and dramatic developments have major implications for terrorism dynamics in the West. Are Europe and North America going to see an influx of returning foreign fighters, some of which will attempt to carry out attacks? Will homegrown sympathizers of the Islamic State conduct attacks to avenge the group’s losses? Will the group be able to maintain a substantial presence in the physical and virtual space?