This paper defines the Islamic State of Iraq and al-Sham (ISIS) Caliphate, including its distinctive features as a Salafi-jihadist group. It also highlights ISIS’ challenge to al-Qaeda’s longstanding leadership of the global jihad, and its impact on jihad in South Asia. It develops conclusions based on classic literature pertaining to the inception and sustainment of terrorist groups, as well as from media sources and outlets throughout the Middle East and South Asia.