The 16-year-old was shot in the head and neck in an assassination attempt by Taliban gunmen on October 9 last year.
Referring to her meeting with President Barack Obama in October, O’Donnell asked Malala about her views on drone strikes in northern Pakistan.
"Is it true that when you spoke with President Obama, that you talked about your concern that drone attacks are fueling terrorism?" the host said.
"It is true that when there's a drone attack the terrorists are killed, it's true. But 500 and 5,000 more people rise against it and more terrorism occurs, and more -- more bomb blasts occurs. ... I think the best way to fight against terrorism is to do it through [a] peaceful way, not through war. Because I believe that a war can never be ended by a war,” Malala answered.
O’Donnell also asked the teenage activist if she was afraid of the Pakistan’s new Taliban chief Maulana Fazlullah, who was the mastermind behind her assassination attempt in Pakistan’s northern Swat Valley.
Malala’s reply once again proved how remarkably brave and wise she is. With a bold look on her face, she replied:
“I'm not afraid of the Taliban. ... If you kill someone, it shows that you are afraid of that person. So, why shall I be afraid of someone who is afraid of me already?"
Watch the complete interview in the video above.