This essay consists of six parts. Firstly, it deals with the concept and implications of fundamentalism that was closely tied with peculiar cognitive way of ancient human beings, namely mythos in contrast to logos. Part Ⅱ discusses the historical background and factors facilitating the emergence of various types of fundamentalism of several world religions during last century, including secularization, post-colonialism, the decline of world communist movement and globalization. In Part Ⅲ, the author elaborates on four components of modern fundamentalism: the merger of religion with politics, commitment to fundamental or basic religious ideas and values, anti-modernism and religious fanaticism as well as militancy. Having discussed the general features and historical development of the radical sects of several world religions, the theoretical framework of Islamic fundamentalism is explicated as it becomes entangled with anti-Westernization and anti-modernism. Thus, in the Section Ⅳ, the rise and evolution of Islamic religion and politics are not only briefly presented, it also traces the three waves of Islamic reform movement to its modern leader Wahhab Muhammad ibn Abdal in the 18th century. Part Ⅴ treats the present-day activities of fundamentalists and their involvement with terrorism. The author puts two scenarios in perspective: one looks upon fundamentalism as maladjustment to modernity and would finally disappear from the scene in the 21st century. Another scenario throws a new light on the complementary function of fundamentalism to the ideas of post-modernism. Thus, it gives fundamentalism somewhat positive evaluation. In conclusion, the writer hopes to find a middle way in order to sketch a fair and objective picture of fundamentalism and to avoid the pitfalls of one-sided presentation of fundamentalism by most Western scholars.