This paper argues that the Prevent strand of the British counter-terrorism strategy (CONTEST) and the related normalisation of exceptional measures to combat terrorism have had a significant impact on the ways in which Muslim communities can play out their Muslimness in Britain. State treatment of Muslims as a suspect com- munity facilitates the (re)production of widespread Islamophobia that penetrates the social fabric and reinforces a popular image of Muslims as folk devils of late modernity. Those Muslims who exhibit popularly understood signifiers of their identity (e.g.: skin colour, beard, hijab) risk becoming an easy, immediate target for state discrimination and social prejudice. After exploring how this vicious cycle is pro- duced and reproduced at both the macro-(state) level and the meso/micro (community and individual) level, some tentative recommendations will be provided. These recommendations advocate for: preventative measures that are grounded on bottom-up approaches and that are able to empower Muslim communities; the promotion of a better, more nuanced understanding of Islam within broader society; and a reflection on the philosophical ideas of difference and diversity as they relate to the coexistence of pluralistic, multi-ethnic communities within post-modern, global societies.