The Treaty of Basel was a significant turning point that concluded the Swabian War, which had erupted in 1496 due to rising tensions between the Swiss Confederation and the Holy Roman Empire. The conflict was instigated by the desire of certain Swiss cantons to maintain their independence, leading to a series of hostilities against Imperial forces. Key battles, such as those at Dornach and Rottweil, showcased the military prowess of the Swiss troops, who effectively utilized their knowledge of the terrain and innovative tactics to outmaneuver a numerically superior foe.

The treaty was negotiated after a period of exhausting warfare, culminating in a recognition of the respective powers' claims and aspirations. Signed in Basel by representatives of the Swiss Confederation and the representatives of Emperor Maximilian I, it formalized the terms that would delineate Swiss autonomy and limit Imperial control over the region. Importantly, the peace terms emphasized the right to self-government for the cantons, which was a substantial achievement for the Swiss and reflected a shift in power dynamics within Europe at that time.

Furthermore, the Treaty of Basel cemented the role of the Swiss Confederation as an independent power in European politics, laying the groundwork for future conflicts and alliances. With the end of the Swabian War, the treaties established a period of peace that allowed the Swiss to engage more with European powers through trade and diplomacy, enhancing their economic stability and political influence.