A considerable amount of research in the West countries during the past 30 years has found a strong tendency to associate Muslims with violent acts. This has resulted in an increase of Islamophobia. I have examined Lithuania’s media, politicians and public perceptions on Muslims-terrorism in order to understand the correlation between Lithuanian media and political discourse on Muslims and their connection with public discourses. I propose that the weaker the linkage between media and political portrayals of terrorism as associated with Muslims, is with public perceptions of terrorism and Muslims, the less likely the latter will see Muslims as folk devils. My analysis of the data supports this hypothesis and conclusively shows that media and political discourse do not have a hegemonic power to control the portrayal of Muslims and to create a sense of moral panic among Lithuanians.