This article challenges the widely held belief that that the United States ‘won the war but lost the peace’ following the war with Iraq in 1991. Fears of a resurgent Iraq grew throughout the decade, despite abundant evidence that Iraq was becoming desperately weak and was no longer a threat to regional security. In fact, the United States won the war as well as the peace by any meaningful definition of the term. The article also discusses the reasons why US policymakers and observers convinced themselves that they had lost. The final section considers implications for strategy and policy in wars of limited objectives.