Abstract : Security and defense of the continental United States received much attention during the 2000 Presidential election campaign. One of the more controversial proposals for homeland defense is deployment of a National Missile Defense (NMD). Allies and adversaries alike are concerned that NMD could cause a shift in the balance of power and might lead to a renewed arms race. This paper explores the NMD issue to determine whether the program should be pursued and, if so, in what form. The paper begins by setting the strategic context in which NMD is being considered, followed by a review of the currently postulated threat. After a description of three proposed NMD configurations, three possible courses of action regarding NMD deployment are discussed. The courses of action are then assessed in terms of diplomatic and economic implications. In the final analysis, this author believes that a limited capability NMD system should be deployed. However, the United States will have to take a proactive diplomatic stance to both garner additional international support among allies and preclude a return to an arms race with emerging competitors similar to that experienced during the Cold War.