A vast literature has focused on the effects of terrorism on tourism demand. This article aims to contribute to this strand of literature by systematically reviewing existing studies and subsequently synthesising their findings. Based on a systematic search of the Web of Science and Scopus databases, a total of 45 peer-reviewed English-language articles were included. The review was conducted and reported under Preferred Reporting Items for Systematic reviews and Meta-Analyses guidelines. The general conclusion is that, with some exceptions, terrorism negatively affects tourism demand. To decompose the effects of terrorism on tourism demand, several main themes were identified within the studies. However, effects varied widely depending on context, for example, terrorism and tourism demand variables used or locations and time periods studied. Consequently, the review identifies gaps in existing research and provides important suggestions for future studies.