There is broad agreement today that the Hague Peace Conferences have influenced the modern rules of dispute settlement. It is much more difficult to assess the specific influence of the Second Peace Conference of 1907. The article attempts to do so. It analyses agreements concluded in 1907 (such as the 2nd Convention on the Pacific Settlement of Disputes and the Drago-Porter-Convention) as well as the Conference's unsuccessful attempts to establish permanent courts and the principle of compulsory arbitration. It argues that while its immediate results were disappointing, the 1907 Conference has shaped the modern law of dispute settlement, often precisely because subsequent generations were able to build on its preparatory work.