Synopsis The terrorist attacks on the US on 9/11, has affected and will continue to affect profoundly the world, no matter how one looks at it. There are differing views on its global impact as well as its consequences and only time will tell which opinions prevail. But, its impact on South Asia has been and will continue to be very high for a long period of time. Both as a possible locale of its origin as well as the scene of the immediate war on terror, the countries in South Asia have experienced deeply the impact of these developments. South Asia felt the impact of these developments not merely as the focus of the military response, there were other and more immediate consequences as well. Tourism to South Asia dropped dramatically, international investments fell, trade and commerce suffered a setback with apparel exports to the US in particular reducing sharply. Other consequences as well. Tourism to South Asia dropped dramatically, international investments fell, trade and commerce suffered a setback with apparel exports to the US in particular reducing sharply. Other consequences directly or indirectly linked to 9/11 were, the intensification of the war on terror in Jammu and Kashmir, resurgence of internal violence in Nepal and the beginning of a fragile peace in Sri Lanka. In lesser or greater degree all felt its impact for better or worse.