The **Treaty of Augsburg** in 1555 resulted in a crucial compromise between **Catholic** and **Protestant** states in the **Holy Roman Empire**. The treaty established the principle of **cuius regio, eius religio**, allowing rulers to determine their own state's religion. It marked an attempt to end religious conflict, providing a temporary peace and stability, but ultimately failed to resolve deeper tensions. The treaty also acknowledged **Lutheranism** alongside **Catholicism** as a legitimate faith, setting a precedent for future **religious tolerance**. However, it was not a lasting solution, and conflicts persisted leading to further religious wars in Europe.