The last three decades of the twentieth century were a period of intense conflict between competing ideologies. That conflict was played out in Afghanistan. The clash of capitalism and communism, both essentially Western ideologies, magnified the internal divisions within the tribal system in Afghanistan. This paper looks at the chain of events during the Cold War and examines the impact of East-West rivalries on Afghanistan. It provides a historical analysis of the rise of the Islamist group, Taliban, and the country's transformation into a terrorist sanctuary.