The Moscow Peace Treaty was signed following the Winter War, a conflict that erupted between Finland and the Soviet Union in late 1939. The Soviet Union aimed to gain territory to secure Leningrad and create a buffer zone against potential threats. The Finnish forces, though outnumbered and outgunned, managed to display remarkable resistance, which drew international sympathy and support. The fighting lasted until early 1940, exhausting both nations. After several months of grueling warfare, punctuated by significant battles like the Battle of Suomussalmi, negotiations began to take shape. Under intense pressure, Finnish representatives agreed to concede significant areas of land, including the majority of Finnish Karelia, to finalize peace with the Soviets.

The signing of the treaty took place in Moscow, with the Finnish delegation realizing the need to reach adequate terms to avoid further bloodshed. This treaty formally ended hostilities, solidifying the Soviet territorial gains. The outcome shaped Finland's future, as the ceded land was rich in resources and held cultural significance for many Finns. Although the treaty allowed Finland to preserve its sovereignty, the socio-political landscape became complex as Finland was compelled to navigate relations with the USSR amid tensions in Europe. The agreement would influence both nations for decades to come.