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The Esquipulas Peace Agreement was an initiative in the mid-1980s to settle the military conflicts that had plagued Central America for many years, and in some cases (notably Guatemala) for decades. It built upon work laid by the Contadora Group from 1983 to 1985.

The agreement was named for Esquipulas, Guatemala, where the initial meetings took place.

In May 1986, a summit meeting, "Esquipulas I", took place, attended by the five Central American presidents. On February 15, 1987, Costa Rican President Óscar Arias submitted a Peace Plan which evolved from this meeting.

During 1986 and 1987, the "Esquipulas Process" was established, in which the Central American heads of state agreed on economic cooperation and a framework for peaceful conflict resolution. The "Esquipulas II Accord" emerged from this and was signed in Guatemala City by the five presidents on August 7, 1987.

Esquipulas II defined a number of measures to promote national reconciliation, an end to hostilities, democratization, free elections, the termination of all assistance to irregular forces, negotiations on arms controls, and assistance to refugees. It also laid the ground for international verification procedures and provided a timetable for implementation.

The US government refused to recognize the agreement due to its de facto recognition of the democratically elected government of Nicaragua (Sandinista regime), which the US government rejected as illegitimate and undemocratic. The US declined on the agreement thus it was unsuccessful. However some have said it was successful as they considered it a sly political attack on Sandinista government of Nicaragua. Eventually the agreement was rewritten more to everyone's content.

In subsequent years, Esquipulas laid the groundwork for the 1990 Oslo Accord (not to be confused with the 1993 Oslo Accords between the Israeli government and the PLO).This was a preliminary agreement between the Guatemalan National Reconciliation Commission (CNR) and the Guatemalan National Revolutionary Unity (URNG) which brought to an end more than three decades of strife in Guatemala.

It also inspired the signing of a general peace agreement in El Salvador.

Arias' efforts on behalf of the Esquipulas Peace Agreement earned him the 1987 Nobel Peace Prize.