The American Indian Movement (AIM), a grassroots organization advocating for Native American rights, initiated a dramatic occupation of Wounded Knee, South Dakota, to protest the failure of the U.S. government to honor its treaties and uphold the civil rights of Indigenous peoples. The standoff began on February 27 as more than 200 Native American activists, led by figures such as Dennis Banks and Russell Means, overtook the town of Wounded Knee on the Pine Ridge Reservation. They claimed that U.S. policies were systematically undermining Native American cultures, livelihoods, and rights, culminating in this potent act of resistance.

The occupation was fueled by ongoing tensions stemming from both contemporary grievances and the historical legacy of injustice faced by Native Americans. AIM members sought to draw national and international attention to their demands, which included the re-examination of treaties and increased autonomy for Native tribes. The prolonged standoff led to confrontations with law enforcement, resulting in violence and arrests. The situation was further complicated by media coverage and the involvement of federal agencies, which depicted a contentious clash between Indigenous rights activists and governmental authority.

As the occupation continued over several weeks, it generated significant media interest, transforming Wounded Knee into a focal point for discussions about Indigenous rights in America. The resolution of the situation came after negotiations and mounting pressure from the activists; however, the incident solidified AIM's role in advocating for Native American issues, leading to further activism and legislative changes over the following decades. This occupation is remembered as a pivotal moment in the Native American civil rights movement, bringing issues such as social justice, land rights, and sovereignty into public consciousness.