We present two simulations designed to convey the strategic nature of terrorism and counterterrorism. The first is a simulated hostage crisis, designed primarily to illustrate the concepts of credible commitment and costly signaling. The second explores high-level decision making of both a terrorist group and the state, and is designed to highlight scarce-resource allocation and organizational dynamics. The simulations should be useful both in a traditional classroom setting as well as to the larger public. We provide a primer on the subject matter, and all the material necessary to run the simulations.