Abstract : The current U.S. policy for reconstruction in the Balkans is represented by the Balkan Stability Pact and is being touted as a second Marshall Plan. The United Nations (UN) Security Council Resolution that brought an end to the recent conflict recognizes the need for a coordinated international effort to support Kosovo's reconstruction and recovery. Economic growth and prosperity in Kosovo is clearly a prerequisite to its stability. It is also a precondition to stability in the broader region. This strategic framework also sets a political framework for peace and stability in the Balkan region through the European Union-proposed Stability Pact. If the U.S. Administration heeds lessons learned from history, it will take steps to launch a comprehensive economic reconstruction plan for the Balkans. The development of a present day Marshall Plan for the Balkans will lead to stability and prosperity for the region much as the Marshall Plan did for Western Europe.