Since the fall of Communism in 2001, Albania has played a constructive role in resolving several of the inter-ethnic conflicts in south central Europe, promoting peaceful dispute resolution and discouraging ethnic-Albanian extremists. Albania sheltered many thousands of Kosovar refugees during the 1999 conflict, and now provides logistical assistance for Kosovo Force troops. Albania is part of the international Strategic Force serving in Bosnia, and Albanian peacekeepers are part of the International Security Assistance Force in Afghanistan and the international stabilization force in Iraq. Albania has been a steadfast supporter of U.S. policy in Iraq, and one of only four nations to contribute troops to the combat phase of Operation Enduring Freedom.

Albania was not invited to join NATO during the latest summit in November 2002, but continues to work with the international community to restructure its armed forces and strengthen democratic structures pursuant to its Membership Action Plan. Since 1999, Albania has spent $42 million annually on military expenditures, roughly 1.5% of its GDP. With bilateral and multi-lateral assistance, the Ministry of Defense is transitioning to a smaller, voluntary, professional military, and reducing the vast amounts of excess small arms, light weapons, and ammunition that litter the country and pose a significant public hazard. The government continues efforts to collect from civilians the weapons that were seized during the chaos of 1997.

In May 2003, Albania and the U.S. signed a treaty on the Prevention of Proliferation of Weapons of Mass Destruction and the Promotion of Defense and Military Relations. Also in May 2003, Albania, Croatia, Macedonia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country's NATO candidacy.