The terrorist attacks on the United States in September 2001 prompted Washington to reevaluate its policies in South Asia and reaffirmed the strategic importance of that region. One result of this reassessment has been renewed efforts to supply arms and weapons systems to the region as a means of expanding influence and bolstering support for US actions in Afghanistan. Concurrently, economic pressures and the traditional drive for influence have prompted continued efforts on the part of Russia to expand arms sales as a tool for increasing revenues and maintaining influence. The potential for a dramatic increase in the number and quality of arms in South Asia may exacerbate existing tensions in the area. This article examines the impact of increased arms transfers to the region in the context of an escalating competition between Washington and Moscow to retain or gain strategic influence and to enlarge markets for military sales.