In the age of hyper-globalization, the processes of globalization may assist transnational Islamic fundamentalist networks in creating a parallel caliphate as a de facto state and the cyber world (a cyber caliphate). The idea of caliphate is appealing as a political system to many within Muslim societies. The study shows how these fundamentalists are urban opportunists, who become participants of globalization to create a new transnational social geography or imagined worlds by using technological innovations. These technological innovations are major tool for recruitment of transnational members to create this imagined world referred as cyber-caliphate.  However, the discussion shows that the nation-states take these transnational acts as threats to their national integrity and do not accord them legitimacy. In a multi-centric world, states rely on multilateral cooperation to create pluralistic spheres of authority to mitigate this transnational security challenge to the post-Westphalian state system.