The Peace of Münster was part of the larger Peace of Westphalia, which sought to conclude both the Thirty Years' War and the Eighty Years' War. Negotiations took place in Münster, Germany, where representatives from Spain and the Dutch Republic convened to resolve ongoing conflicts. For the Dutch, the acknowledgment of their independence was a crowning achievement after a protracted struggle that began with their revolt against Spanish rule. The negotiations were complex and marked by various political dynamics, including the involvement of other European powers, which sought to exert their influence in the region.

The Dutch Republic, having gained considerable military and economic strength through naval prowess and trade, was driven to secure a formal peace. Spain, exhausted by protracted wars and facing internal challenges, was ultimately compelled to accept the reality of Dutch independence. The signing of the treaty not only affirmed Dutch sovereignty but also established diplomatic relations, paving the way for future trade agreements and cooperation between the two nations.

The Peace of Münster underscored the shift in military and economic power, as Spain's acknowledgment marked a decline in its hegemonic status in Europe. The treaty was significant not only for the Netherlands but also for the broader geopolitical landscape, influencing the balance of power among European states. It allowed the Dutch to emerge as a major economic player, leading to a Golden Age in the arts, science, and trade.