The Greek-Turkish dispute over the Aegean encompasses several distinct, yet interrelated, factors: 1. sovereign rights over the Aegean continental shelf; 2. territorial waters limits within the Aegean claimed by each side; 3. jurisdiction over airspace zones; and, 4. sovereignty over certain or unspecified (gray areas) Aegean islands. The Greek-Turkish dispute threatens peace and stability in the region. Moreover, the tension has disrupted the cohesion of NATO and jeopardizes the ability of the Western alliance to influence events in the Middle East and the Balkans. This thesis maintains that U.S. policy after World War II strongly influenced domestic politics in Greece and Turkey and, consequently, contributed indirectly to the dispute itself. American diplomacy's relative ineffectiveness on this issue and future implications must therefore be considered. Generally, United States and NATO objectives, initiated by the Cold War priorities, transformed during time the regional policies of Greece and Turkey. Furthermore, these priorities created an imbalance in the Aegean, and, consequently, Turkish objectives became wider in spectrum.