This paper seeks to explain how Shia Islam’s theological stances have prevented the formation and growth of extremism and violence and the spread of terrorism while blocking any attempt by extremists to extend the domain of blasphemy and jihadism to Muslims and carry out criminal and terrorist actions. Studies conducted within the framework of this research show that the Shia theological stances have not allowed the emergence of extremist thoughts and terrorist groups in the Shia community due to following the teachings of the Prophet Muhammad’s family and the institutionalization of wisdom and the emergence of reformism in the contemporary period in fundamental issues like monotheism, prophethood, justice, imamate, resurrection, determinism and free will, intrinsic goodness and badness, and independent intellectual reasoning, as promoted by Ayatollah Morteza Motahari, Allame Tabatabaei, Ayatollah Abdollah Javadi Amoli, Imam Khomeini and others. This approach has found its way into the principles of Shia fiqh (religious jurisprudence) and offered guidance to the society and the youth to prevent the emergence of terrorism among Shias and in the Shia community.