The United States is unprepared to deal with the threat of caliphate yearnings and the eschatology that spawns it. They have failed to give proper emphasis to the role of eschatological expectation in terrorist doctrine. These yearnings for a caliphate or successor will take on nationalist, religious, and sectarian clothing. The symbolism contained in these movements is powerful for both Sunnis and Shiites. Since there is no recognized figure for Sunnis, al Qaeda’s logical approach is to tap into the expectation of the Sunni masses. What the masses are looking for is representation from a leader who convinces them of his sincere concern for them. Many Sunni and Shiite groups have embraced a more radical version of Islam spawned by al Qaeda. Those who adhere to this radical version view the struggle within Islam and against the West as a perpetual jihad ordained by God until a just caliphate or successor emerges. This paper focuses on the five prophetic stages of Islam. Four of these stages have come to pass with a future stage or the fifth stage to result in the rise of the caliphate and the return of the Mahdi. In order to fulfill this fifth stage, al Qaeda and other Sunni and Shiite networks are actively promoting jihad activity. 33 footnotes