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In light of the events of 9/11 and the subsequent actions and reactions on the part of nation-states in the West and “terrorists” in the East, this paper discusses the concepts of Islamophobia (political and media-manufactured) and multiculturalism in the British context. Rising Islamophobia, state actions, and media reactions to 9/11 have led to changing definitions of the “good multicultural society.” British Muslims are caught in a quagmire: Their loyalties are questioned by a society and polity that is still in the processes of establishing its “Englishness” from its “Britishness,” while growing Islamic political radicalism undermines the already precarious relations between British Muslims and the state.