The fall of the Soviet Union and collapse of communist ideology has played a significant role in the transformation of Azerbaijani society. The country was slowly recovering from a seventy year old totalitarian regime, and began to enjoy the benefits of free soci-ety. Transformation, however, did also bring many problems. Thanks to its favorable geographical location – between Iran and Turkey and sharing a border with volatile Dagestan republic-, weak law-enforcement agencies, gaps in legislation as well as fast spreading of globalization, Azerbaijan became target of religious and radical movements vying for influence. Moreover, the existence of Islamic State in Syria and Iraq became attracting point for many young disenfranchised people. The following paper would discuss the challenges of religious revival in the country and problems of radicalisation in society in post-Soviet environment