The Franco-Italian Agreement, signed by Italian dictator Benito Mussolini and French Foreign Minister Pierre Laval, marked a significant diplomatic moment in the interwar period. This agreement was established to bolster relations between the two nations, which had faced strains in the years post-World War I. The early 1930s were characterized by changing alliances and increasing political isolation, particularly for France and Italy, as both nations sought to address the threats posed by the rise of fascism and the aggressive posturing of Nazi Germany. Laval's diplomatic strategy aimed to bring Italy into a cooperative framework with France, hoping to contain the growing power of Germany in Europe.

During the negotiations leading to the agreement, both leaders engaged in discussions that highlighted the desire for mutual benefit, including economic collaboration and political support. The treaty included promises for deeper cooperation on security and stability in the Mediterranean region, an area of strategic importance for both countries. Although the agreement appeared to strengthen ties, divergent national interests, especially regarding colonial ambitions, would continue to create tension in the future. Consequently, while this agreement initially signified a reconciliation between Italy and France, it would ultimately be tested by the global geopolitical currents of the late 1930s.

The signing occurred in Rome at a time when Italy was also extending its influence in Ethiopia and ramping up militaristic postures in response to growing tensions in Europe. Mussolini sought to portray Italy as a powerful and influential player on the international stage, aligning with France under certain pretexts while maintaining a firm grip on his domestic policies. The agreement served as both a political maneuver for Laval and Mussolini, aiming to secure their countries' positions in a rapidly changing European landscape, yet foreshadowed the impending conflicts that would test such alliances.