Purpose This study aims to investigate the impact of terrorism on financial inclusion that is achieved through automated teller machine penetration and bank branch expansion. Design/methodology/approach Eight countries that are the most terrorized countries in the world were analysed using the panel fixed effect regression model and the generalized linear model. Findings The results provide evidence that terrorism reduces the level of financial inclusion in countries experiencing terrorism, but the presence of strong legal institutions, accountability governance institutions and political stability governance institutions mitigate the adverse effect of terrorism on financial inclusion. Originality/value A growing literature has shown that terrorism affects the economy, yet little is known about its impact on financial inclusion.