Morocco is active in Maghreb, Arab, and African affairs. It supports the search for peace in the Middle East, encouraging Israeli-Palestinian negotiations and urging moderation on both sides. In 1986, then King Hassan II took the daring step of inviting then-Israeli Prime Minister Peres for talks, becoming only the second Arab leader to host an Israeli leader. Following the September 1993 signing of the Israeli-Palestinian Declaration of Principles, Morocco accelerated its economic ties and political contacts with Israel. In September 1994, Morocco and Israel announced the opening of bilateral liaison offices. These offices were closed in 2000 following sustained Israeli-Palestinian violence. Moroccan-Israeli diplomatic contacts continued with Israeli Foreign Minister Shalomís meeting with King Mohammed in Morocco in September 2003 and again in New York later that month.

Morocco has supported efforts to stabilize Iraq following the downfall of Saddam Hussein. Morocco was the first Arab state to condemn Iraqís invasion of Kuwait and sent troops to help defend Saudi Arabia. Morocco maintains close relations with Saudi Arabia and the Persian Gulf states, which have provided Morocco with substantial amounts of financial assistance. Morocco was among the first Arab and Islamic states to denounce the September 11, 2001 terrorist attacks in the United States and declare solidarity with the American people in the war against terrorism On May 16, 2003, Moroccan suicide bombers simultaneously attacked five sites in Casablanca, killing more than 40 people and wounding over 100. More than a million people subsequently demonstrated to condemn the attacks.

The major issue in Morocco's foreign relations is its claim to Western Sahara. As a result of Algeria's continued support for the Polisario Front in the dispute over Western Sahara, relations between Morocco and Algeria have remained strained over the past several decades, although there is periodic high-level contact between the two countries.

From 1904 until 1975, Spain occupied the entire territory, which is divided into a northern portion, the Saguia el Hamra, and a southern two-thirds, known as Rio de Oro. In 1969, the Polisario Front (Popular Front for the Liberation of the Saguia el Hamra and Rio de Oro) formed to combat the occupation of the territory. In November 1975, King Hassan mobilized 350,000 unarmed Moroccan citizens in what came to be known as the "Green March" into Western Sahara. The march was designed to both demonstrate and strengthen Moroccan claims to the territory. On November 14, Spain, Morocco, and Mauritania announced a tripartite agreement for an interim administration under which Spain agreed to share administrative authority with Morocco and Mauritania, leaving aside the question of sovereignty. With the establishment of a Moroccan and Mauritanian presence throughout the territory, however, Spain's role in the administration of the Western Sahara ceased altogether.

After a period of hostilities, Mauritania withdrew from the territory in 1979 and signed a peace treaty with the Polisario, relinquishing all claims to the territory. Moroccan troops occupied the region vacated by Mauritania and later proclaimed the territory reintegrated into Morocco. Morocco subsequently built a fortified berm around three-fourths of Western Sahara and has since asserted administrative control over the territory.

At the OAU (now African Union) summit in June 1981, King Hassan announced his willingness to hold a referendum in the Western Sahara. Subsequent meetings of an OAU Implementation Committee proposed a cease-fire, a UN peacekeeping force, and an interim administration to assist with an OAU-UN-supervised referendum on the issue of independence or annexation. In 1984, the OAU seated a delegation of the Sahara Democratic Arab Republic (SDAR), the shadow government of the Polisario; Morocco, consequently, withdrew from the OAU.

In 1988, Moroccan and Polisario representatives agreed on a UN peace plan. A UN-brokered cease-fire and settlement plan went into effect on September 6, 1991. The Polisario have released many Moroccan POWs but still hold more than 400, even more than 25 years after the conflict began. The UN continues to explore with the parties ways of arriving at a mutually agreed political settlement and to promote confidence-building measures between the parties in the interim. Former Secretary of State James Baker resigned as the Secretary Generalís Personal Envoy in June 2004. Following the departure of Alvaro DeSoto in May 2005, the position of Special Representative of the UN Secretary General for the Western Sahara remains vacant.

The United States has consistently supported the cease-fire and the UN's efforts at finding a peaceful settlement. While recognizing Morocco's administrative control of Western Sahara, the United States has not endorsed Morocco's claim of sovereignty.