Islamic radicals returning from Iraq and Syria will be forced on to "deradicalisation" programmes to reverse any brainwashing, British Prime Minister David Cameron said.
Jihadists made subject to court controls will be ordered to engage in anti-extremism schemes as part of a raft of new measures.
The move comes amid growing concern over the threat posed by Britons who have joined Isis (Islamic State).
At least 500 young Muslims are feared to have gone to fight in the Middle East. Half of them have already returned to Britain and some could be plotting attacks.
Cameron told the Commons: "Adhering to British values is not an option or a choice. It is a duty for all those who live in these islands. We will stand up for our values. We will in the end defeat this extremism and we will secure our way of life for generations to come."
Under the proposals, any terror suspect placed under Terrorism Prevention and Investigation Measures (Tpims) will be forced to engage in a Prevent programme, which tackles radicalisation.
Tpims are court orders that allow restrictions to be placed on the movements and activities of suspects where there is insufficient evidence to bring charges. The aim will be to reverse the warped perception of Islam that young fanatics have been brainwashed into believing.
Ed Miliband, the Labour leader, said the deradicalisation proposals should apply to anyone returning from Iraq or Syria.
Nick Clegg, the Deputy Prime Minister, threatened to block a key plank of the new anti-terrorism laws amid concern that they infringe on human rights. Cameron announced plans to give the police powers to temporarily seize passports at the border if people are thought to be travelling to Iraq or Syria.
He also said the Government will push through laws to either force terrorist suspects to relocate from their home towns or create "exclusion zones" where they are not allowed to travel.
It came as British forces flew more than nine tonnes of assault rifle ammunition to Kurdish forces in Iraq.
Two RAF C-130 Hercules planes landed in Erbil, the capital of the Kurdish region of Iraq, to deliver the ammunition and hundreds of sets of body armour, helmets and sleeping bags.
The Prime Minister also said airlines will be prevented from landing in Britain unless they release details of all passengers on their planes.
The Liberal Democrats said Clegg had not yet committed to the enforced relocation of terror suspects and would "examine" the plan. A senior Lib Dem source said "we have not definitely signed up to introducing relocation powers".