Terrorism has adversely affected the educational environment in Khyber Pakhtoon Khwa Province. This study was conducted to know the impact of Terrorism on managerial efficiency of heads of secondary schools in Khyber Pakhtoon Khwa that included Malakand, Mangawara, Dir, Hangu , Bannu and D I Khan which are the highly affected areas of terrorism. Sample of the study comprised 120 Heads of Secondary schools, 60 males and 60 females. A five point scale was designed for data collection. The study concluded that Terrorism has badly affected the managerial efficiency of secondary school heads. The morale of the school Heads is low. Government has to immediately devise a strategy to control the terrorism and the school heads are to be given administrative and managerial training to improve their managerial efficiency.