This chapter provides an in-depth analysis of the debate on the impact of this development, particularly on the issue of whether overt nuclearisation has injected a dose of stability in an otherwise unstable region or has added more instability. It proceeds in the following manner. In the following part, it provides a brief historical background of South Asian regional co-operation and the evolution of South Asian Association for Regional Co-operation (SAARC). In the second part, the chapter adumbrates the nuclear evolution of the region. The third part examines the reactions of SAARC countries to IndoPakistani nuclear tests. The fourth part analyses the impact of overt nuclearisation of the region on regional co-operation and the activities of SAARC. In the fifth part, two specific proposals are advanced to revamp regional cooperation. SAARC clearly did not demonstrate any renewed vigour in its activities following the nuclear tests. In the conclusion, it summarises the key points.