This study deals with the militant Islamic challenge to the Egyptian regime during the early 1990s. The article analyzes the militant Islamic groups' modes of operation and the regime's counter-measures. This analysis leads to the conclusion that although the Islamic groups are a major source of instability in Egypt, their ability to overthrow the government and to establish an Islamic order is doubtful. The militant Islamic groups would be able to pose a viable alternative to the regime only if they could overcome the disputes among themselves, broaden their socioeconomic infrastructure, penetrate the army and find a charismatic leader capable of attracting and leading the masses.