This paper presents terms of radicalization, counter-radicalization and deradicalization in educational institutions with accent on universities and madrasas. Radicalization is a term with a lot of definitions and authors do not agree on a single definition. There are different models of radicalization which stress that radicalization is a process which lasts and describe how radicalization occurs. Because of different psychological, social and political factors; students are especially vulnerable to radicalization. There are examples of highly educated terrorists and terrorists which attended madrasas. Paper presents conditions and methods of radicalization in universities and madrasas; counter-radicalization and deradicalization measures which are implemented in universities and madrasas. Considering a connection between education, radicalization and terrorism, many states recognize importance of fight against radicalization in education institutions, and they put it in their strategies of prevention of terrorism and radicalization. Paper offers a critique of counter-radicalization measures which lead to securitization of education and creation of permanent state of emergency in education which especially harms Muslim students. Paper also presents a role of education and educational institutions in strategies of United Kingdom, Norway, Denmark and Croatia.