Peace talks in early 1993 were disrupted by the seizure of Azerbaijan's Kelbajar district by Nagorno-Karabakh Armenian forces and the forced evacuation of thousands of ethnic Azeris. Turkey in protest then followed with an embargo of its own against Armenia. A cease-fire was declared between Azeri and Armenian/Nagorno-Karabakh forces in 1994 and has been maintained by both sides since then in spite of occasional shooting along the line of contact. All Armenian governments have thus far resisted domestic pressure to recognize the self-proclaimed independence of the "Nagorno-Karabakh Republic," while at the same time announcing they would not accept any peace accords that returned the enclave to Azerbaijani rule. Approximately 526,000 of the estimated 800,000 ethnic Azeris who fled during the Karabakhi offensives still live as internally displaced persons in Azerbaijan, while roughly 235,000 of 360,000 ethnic Armenians who fled Azerbaijan since 1988 remain refugees.

Negotiations to peacefully resolve the conflict have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by the U.S., France, and Russia. Negotiations have intensified since 2004.

According to Armenia's Office of the Geographer, Karabakhi Armenians, supported by the Republic of Armenia, now hold about 11% of Azerbaijan and have refused to withdraw from occupied territories until an agreement on the status of Nagorno-Karabakh is reached. Armenia and Azerbaijan continue to observe the cease-fire that has been in effect since May 1994, and in late 1995 both also agreed to OSCE field representatives being based in Tbilisi, Georgia, to monitor the cease-fire and facilitate the peace process.