In this chapter, I shall argue how the theories of globalization that predicted declining sovereignty of the nation-state is reversed in the wake of the September 11 attack on the World Trade Center in America. The contemporary discourses of security reinvent a reinvigorated nation-state to counter, paradoxically, the growing menace of a global network of Islamic terrorism. My contention, however, is that the contemporary discourses of Islamic fundamentalism – both by the Islamists and the West – in the context of globalization over-determines the capability of pan-Islamism failing to see how very often the resistance movements in the Islamic countries operate within the local framework of the nation-state. This chapter, then, is an attempt to theorize counter-globalization movements within the framework of local and nationalist aspirations. Such a theorization, while offering “critical localism” as a resistance to globalization, deconstructs the hegemonic discourses of transnational Islamic fundamentalism, on the one hand, and, the claims of Western economic and cultural globalization, on the other. In my analysis, I shall use America – the geographical, political, and cultural entity – as a shorthand expression for the West.