In this paper, the role of drug lords in the war against terror in Afghanistan will be explored. The aim is to find out how drug mafia helps the Taliban and Al-Qaeda in their attacks against both American and local people. The domestic terrorism created by drug lords against American soldiers and the native population will be revealed in the paper. For a very long time, Afghanistan has been infested with the drug trade. The lucrative opportunity drug trade has to offer attracted many people towards this illicit business. All this gave rise to drug mafia in the country. This mafia is controlled by drug lords who have become very strong over the course years by dealing in drugs. Afghanistan is the top producer of opium all over the world (IRIN News, 2004). The drug trade in Afghanistan started back during the era of the Soviet Union in Afghanistan in the late 1970s. This was the first time when drug trade flourished in the region because Afghan commanders needed to finance their resistance and found no easier way than to cultivate opium in different parts of the country (IRIN News, 2004). Since then drug lords have existed in the country because opium business is very lucrative for these drug lords and it offers them money no other would offer them. After the Soviet Union existed from the region in the late 1980s drug lords started their own battles for turf control. This led to an exponential increase in the drug trade in the country. There was no centralized power in the country and therefore drug lords created their own territories.This is how drug trade affects terrorism against the US and Allied forces. Terrorists are able to gain financial support through the drug trade and any attempt to restrict the drug trade is resisted by local farmers.