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In the 21st century, there has been a growing debate about urban security. Much of this discussion has focused on the changing definition of security, one that has been transformed in terms of military security towards human security. Everywhere around the world, states are trying to shift and adapt strategies according to the changing definition. With the people migrating from rural to urban areas, cities a dwelling for humans have become a center for a nations growth and development since it is here that much of political and economic developments are maintained. Their sustainability and resilience has become a challenge for governments, especially those of the third world countries. The catalyst of urban terrorism has intensified this challenge with governments around the world being involved in overreactions for their existential threats, without addressing much of the root cause of the problem. Thus, it is in this context that the paper first identifies the nature of threat, its perception and its linkage to strategic culture shaping the national security policy of a country. As a case to the nature of national threat, concept of urban security and terrorism is detailed. Lastly, the paper emphasize on the concepts of urban resilience and prosperity, which can be taken as cases of precaution while formulating strategies for its protection. Highlighting examples of urban terrorism around the world the paper moves on to conclude that acts of urban terrorism are growing and much of the tactics followed by terrorist are being adopted from warfare conducted by urban insurgents. It is concluded that threat in this case is the result of states internal failed policies, which can be detrimental for national, regional and international security.