The events of 9/11 changed the pace of the events in world politics. United States declared a war against terrorism and grasped massive support from the world community. The events of 9/11 also impacted heavily on Kashmir’s freedom movement, as India succeeded in linking the freedom struggle with terrorism. The study takes into account, among others, American interest as a factor in shaping post-9/11 developments on Kashmir issue. The author has ably • analyzed and investigated CBMs; • analyzed the Composite Dialogue; • investigated the reciprocal impact of CBMs and Composite Dialogue, and • traced out the factors militating against the substantial outcome of peace process. To the end, the author has made very practical recommendations on moving towards the solution of this long outstanding international problem.