The author reviews the history of Hizballah since its inception in 1982, and examines its role in the recent political turmoil of Lebanon and the region. Not only is Hizballah's role central in the dispute over the Sheb'a Farms enclave between Lebanon and Israel, it is part of an entangled set of linkages involving Syria, Iran, the United States, the European Union, and the Palestinians. The challenge that Hizballah poses to U.S. policy in the Middle East involves complicated strategic issues, not merely problems of terrorism that could be dealt with by countermeasures.