CPEC is a multi-billion project aimed at regional connectivity, improving Pakistan’s economy and turning Gwadar into a trade hub of this region. Various countries have shown interests in becoming part of CPEC and reaping its benefits. However, the mega project faces huge strategic and security challenges. The changing dynamic of South Asia is particularly concerning for the security of CPEC. The region is witnessing the rise of Islamic State in Afghanistan, Baloch insurgency in Balochistan and India’s hostility towards Pakistan in general and CPEC in particular. For a past couple of years, these threats have begun to materialize, in 2018 a suicide attack in Mastung killed 149 people. The responsibility of the attack was claimed by Islamic State. While this year Baloch insurgents stormed PC hotel in Gwadar , resulting in the death of five people. These events indicate the need for swift action and planning on part of both China and Pakistan.