Bosnia and Herzegovina remains the linchpin of regional stability in the Western Balkans due to its central position, the legacy of the war, and intra-regional relations that continue to restrict the country’s ability to function as a normal state. This chapter looks into the chief security challenges facing Bosnia and Herzegovina, including inter-ethnic divisions, Islamic radicalism, secessionist tendencies and constitutional reform, and economic fragility in the face of COVID-19. It argues that corrupt political-ethno elites and the dysfunctional status of the Dayton Peace Agreement as the backbone of democracy are preventing the country from addressing crucial rule-of-law and constitutional reforms. A complex decision-making apparatus dominated by three ethnic groups has robbed the country of its potential to conduct a univocal foreign policy. Sustainable peace and security within Bosnia and Herzegovina, and within Kosovo, are crucial for a sustainable peace and for security throughout the entire region.