For Myanmar, the year 2015 was significant especially with the signing of the Nationwide Ceasefire Agreement (NCA) between the representatives of eight Ethnic Armed Groups (EAGs) and the government. Nevertheless, Myanmar faces threats from other major EAGs, particularly in Kachin and Shan state that are not part of the NCA and continue the fight against the government. Besides the ethnic conflict, inter-religious tensions mar the country’s social fabric besides rendering it a victim of extremism and radicalisation. There is evidence that terrorist groups like Al Qaeda in the Indian Subcontinent (AQIS) and the Islamic State in Iraq and Greater Syria (ISIS) are exploiting the religious tensions in Myanmar for their own gains. Resolving the ethnic conflicts in the country, and managing the threat associated with the issue of terrorism, extremism and rising inter-religious tensions will be the key challenge for Myanmar’s new government under the National League for Democracy (NLD) party.