In Nigeria today, terrorism has claimed waves with its dire consequences on Small and Medium Scale Enterprises and living standards of the people. Terrorism has posed insecurity and hazards in the business environment, thereby, engineering unimaginable upheaval in the northern region of the country. This study aimed at examining the impact of terrorism on Small and Medium Scale Enterprises mortality rates and standard of living in the northern region of Nigeria. The study used both primary and secondary methods of gathering reliable and adequate data and information to achieve its purpose. The primary method includes the personal interview and questionnaire administered to the randomly selected respondents; and the secondary method includes textbooks, journal and internet. To analyze the data gathered for this study, descriptive statistical tool, tables and Chi-Square method were used. The study revealed that terrorism can lead to high mortality rate of SMEs and degradation of the living standards of the people in the northern part of Nigeria. It was concluded that terrorism will not only lead to high mortality rate of SMEs and degrade the living standards of the people, but may crumble the country's national economy at the long run if no vibrant measure is taken to halt the menace. The study therefore recommended that the government should formulate and implement vibrant policies and programmes as mechanism towards addressing the root causes of insecurity in Nigeria and putting a halt to the menace.