Nowadays states rarely resort to war to defeat each other or to address war-threatening crises and armed conflicts. Instead, coercive diplomacy has emerged as their strategy of choice when persuasion and other non-military instruments fall short. Coercive diplomacy involves the use of military threats and/or limited force (sticks) coupled with inducements and assurances (carrots) in order to influence the opponent to do something it would prefer not to. States use coercive diplomacy in the hope of achieving their objectives without having to resort to full-scale war. This chapter presents the strategy of coercive diplomacy and its requirements for success and shows how states have employed it to manage crises and conflicts during the three strategic eras that the world has passed through since the end of the Cold War.