The Treaty of Ghent, signed in December 1814, marked the end of the War of 1812 between the United States and Great Britain. Its significance lies in that it restored the pre-war boundaries without territorial changes and effectively halted ongoing conflicts. The treaty was crucial for both nations as it helped mend diplomatic relations, leading to improved trade and cooperation in subsequent years. The treaty came amidst the rise of nationalism in the U.S. and solidified American sovereignty, while also demonstrating that conflicts could be settled through diplomacy rather than extended war.