During the multiple rounds of talks that lead to the Oslo accord, the Kingdom of Jordan and Israel also moved closer to peace. The two nations had technically been at war since 1967 and Jordan maintained it should control the West Bank and Jerusalem, as it had before the war.

As early as 1988, King Hussein of Jordan had begun to work towards peace. In July of that year, his government formally surrendered its claim to the West Bank, severing all legal and administrative ties. When the major bilateral talks began in 1991, Jordan coordinated with the Palestinians to send a delegation to the Madrid conference. In early 1992, Israeli and Jordanian/Palestinian delegates resolved procedural differences that allowed the peace talks to resume.

As the Oslo Accord set the stage for a Palestinian/Israeli peace deal, Jordan also moved to make peace with Israel. A day after the signing ceremony in Washington in September 1993, the two sides agreed to the Israel-Jordan Common Agenda, marking the end of the state of war between the two nations and paving the way for formal peace treaty talks.

On October 24, 1994, the Treaty of Peace between the State of Israel and the Hashemite Kingdom of Jordan was signed at the White House by Israeli Prime Minister Yitzhak Rabin and Jordan's King Hussein.

After the peace accord was signed, King Hussein took on a key role in negotiating the implementation of the Israeli/Palestinian accords. In 1997, his work led to an Israeli withdrawal from Hebron, later he worked with Palestinian leader Yasser Arafat and Israeli leaders, even while battling terminal cancer. King Hussein succumbed to cancer in February 1999, but his son, King Abdullah, continues to work for peace in the region.