Recently politicians in Australia have raised concerns that some Muslims are not adopting Australian values to a sufficient extent. In this paper I explore the notion of Australian values with respect to immigrant youth. By analysing interviews with 32 Muslim students who are 15-18 years of age and of diverse backgrounds in two state schools in Sydney, I focus on the extent to which these young people seem to be adopting Australian values. I discuss the factors that hinder the adoption of Australian values, and whether such hindrance can lead to a possible jihadi threat. This paper relies on oral testimonies and secondary sources, including international literature.