This article assesses the state of Tunisian jihadism after the Sousse massacre. After providing a brief history of jihadism’s growth in Tunisia following former President Zine el Abedine Ben Ali’s fall, the article explains the serious challenges the beach attack has placed upon the Tunisian state—especially given the strong reliance of Tunisia’s economy on the tourism industry. The article goes on to explore the major jihadist players in Tunisia, including those affiliated with both the Islamic State and al-Qa`ida, as well as the state’s response to this new phase in its jihadist challenge. The article concludes with a discussion of the possible future of Tunisian jihadism, including the potential for the country to become a theater of increased competition between al-Qa`ida and the Islamic State.