संयुक्त राज्य अमेरिका और सोवियत संघ ने दोनों दक्षिण एशियाई देशों के बीच संघर्ष में और वृद्धि को रोकने के लिए महत्वपूर्ण राजनयिक उपकरण का उपयोग किया। प्रीमियर एलेक्सी कोसियन के नेतृत्व में सोवियत संघ ने ताशकंद (अब उज्बेकिस्तान में) में युद्धविराम की वार्ता की मेजबानी की, जहां भारतीय प्रधान मंत्री लाल बहादुर शास्त्री और पाकिस्तानी राष्ट्रपति अयूब खान ने ताशकंद समझौते पर हस्ताक्षर किए, 25 फरवरी 1966 के बाद से अगस्त के पूर्व में सेनाएं वापस लेने के लिए सहमत हुए।

With declining stockpiles of ammunition, Pakistani leaders feared the war tilting in India's favor. Therefore, they quickly accepted the ceasefire in Tashkent. Despite strong opposition from Indian military leaders, भारत budged to growing international diplomatic pressure and accepted the ceasefire. On September 22, the संयुक्त राष्ट्र Security Council unanimously passed a resolution that called for an unconditional ceasefire from both nations. The war ended the following day.

India's Prime Minister, Shastri, suffered a fatal heart attack soon after the declaration of the ceasefire. As a consequence, the public outcry in India against the ceasefire declaration transformed into a wave of sympathy for the ruling Indian National Congress. The ceasefire was criticized by many Pakistanis who, relying on fabricated official reports and the controlled Pakistani press, believed that the leadership had surrendered military gains. The protests led to student riots. Pakistan State's reports had suggested that their military was performing admirably in the war – which they incorrectly blamed as being initiated by India – and thus the Tashkent Declaration was seen as having forfeited the gains. Some recent books written by Pakistani authors, including one by ex-ISI chief titled "The Myth of 1965 Victory", allegedly exposed Pakistani fabrications about the war, but all copies of the book were bought by Pakistan Army to prevent publication because the topic was "too sensitive".

India and Pakistan accused each other of ceasefire violations; India charged Pakistan with 585 violations in 34 days, while Pakistan countered with accusations of 450 incidents by India. In addition to the expected exchange of small arms and artillery fire, भारत reported that Pakistan utilized the ceasefire to capture the Indian village of Chananwalla in the Fazilka sector. This village was recaptured by Indian troops on 25 December. On October 10, a B-57 Canberra on loan to the PAF was damaged by 3 SA-2 missiles fired from the IAF base at Ambala. A Pakistani Army Auster was shot down on 16 दिसम्बर killing one Pakistani army captain and on 2 फ़रवरी 1967, an AOP was shot down by IAF Hunters.

The ceasefire remained in effect until the start of the Indo-Pakistani War of 1971.

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