The Treaty of Tordesillas, signed in 1494, established an agreement between Spain and Portugal to divide newly discovered lands outside Europe. The treaty drew an imaginary line in the Atlantic Ocean, granting Spain the right to explore and claim territories to the west of the line and Portugal the rights to the east. This division was critical for colonial expansion during the Age of Discovery, aiming to prevent conflict between the two powerful nations. However, it overlooked the presence of indigenous populations and later conflicts arose as other European powers challenged the territorial claims established by the treaty.