Abstract : Europe is transforming to Eurabia - a unified European superstate that is the cultural and political appendage of the Arab/Muslim world. Eurabia is the product of the realization of a long held desire of European elites to balance the power of the United States and the encroachment of Islamic values into the fabric of European liberal democratic ideals. An increasing Muslim population is demanding inclusion of their Islamic values at the same time they are unwilling or unable to modify their Islamic beliefs to fit within a secular political construct. This threatens to alter the foundation of common values and interests upon which America's relationship with Europe is built. U.S. strategic thinkers and policy makers must evaluate the transatlantic relationship and consider that in Eurabia, key partners once considered reliable on many issues may no longer be so reliable; forcing America to find new partners or accept a different relationship with Europe.