In this chapter, we examine Operation Blue Star, its aftermath, the anti-Sikh riots in Delhi and the Indian state’s efforts to find a negotiated solution up to 1987 with the Rajiv-Longowal Accord. We then evaluate the shift in strategy to combat antiterrorism (mid-1987 to mid-1991). This is followed by a review of the counter-insurgency operation from the end of 1991 to early 1993 which defeated the Sikh militancy and led to the restoration of ‘normality’. After 1993, we outline how the moderate Sikh political leadership re-engaged with the political process in the state and won a landslide victory in the state elections in 1997. In conclusion, we reflect on the competing explanations offered in the literature on the defeat of the militancy associated with the movement for Khalistan.