On May 1 1960, a United States U-2 spy plane was shot down by the Soviet Air Defence Forces while performing photographic aerial reconnaissance deep inside Soviet territory. The single-seat aircraft, flown by pilot Francis Gary Powers, had taken off from Peshawar, Pakistan and crashed near Sverdlovsk (present-day Yekaterinburg) after being hit by an S-75 Dvina (SA-2 Guideline) surface-to-air missile. Powers parachuted safely and was captured.

Initially, the US authorities acknowledged the incident as the loss of a civilian weather research aircraft operated by NASA, but were forced to admit the mission's true purpose when a few days later the Soviet government produced the captured pilot and parts of the U-2's surveillance equipment, including photographs of Soviet military bases taken during the mission.

The incident occurred during the presidency of Dwight D. Eisenhower and the premiership of Nikita Khrushchev, around two weeks before the scheduled opening of an eastwest summit in Paris. Khrushchev and Eisenhower had met face-to-face at Camp David in Maryland in September 1959, and the seeming thaw in U.S.-Soviet relations had led people around the world to hope for a peaceful resolution to the ongoing Cold War. The U2 incident caused great embarrassment to the United States, and shattered the amiable "Spirit of Camp David" that had prevailed for eight months, prompting the cancellation of the planned Paris summit. Pakistan apologized to the USSR for the incident.Powers was convicted of espionage and sentenced to three years of imprisonment plus seven years of hard labour, but was released two years later in February 1962 in a prisoner exchange for Soviet intelligence officer Rudolf Abel.

The Cold War was a period of geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc, which began following World War II. Historians do not fully agree on its starting and ending points, but the period is generally considered to span the 1947 Truman Doctrine (12 March 1947) to the 1991 dissolution of the Soviet Union (26 December 1991). The term cold war is used because there was no large-scale fighting directly between the two superpowers, but they each supported major regional conflicts known as proxy wars. The conflict was based around the ideological and geopolitical struggle for global influence by these two superpowers, following their temporary alliance and victory against Nazi Germany in 1945. Aside from the nuclear arsenal development and conventional military deployment, the struggle for dominance was expressed via indirect means such as psychological warfare, propaganda campaigns, espionage, far-reaching embargoes, rivalry at sports events and technological competitions such as the Space Race.

The Western Bloc was led by the United States as well as the other First World nations of the Western Bloc that were generally liberal democratic but tied to a network of the authoritarian states, most of which were their former colonies. The Eastern Bloc was led by the Soviet Union and its Communist Party, which had an influence across the Second World and was also tied to a network of authoritarian states. The US government supported anti-communist governments and uprisings across the world, while the Soviet government funded left-wing parties and revolutions around the world. As nearly all the colonial states achieved independence in the period 1945–1960, they became Third World battlefields in the Cold War.

The first phase of the Cold War began shortly after the end of the Second World War in 1945. The United States and its allies created the NATO military alliance in 1949 in the apprehension of a Soviet attack and termed their global policy against Soviet influence containment. The Soviet Union formed the Warsaw Pact in 1955 in response to NATO. Major crises of this phase included the 1948–1949 Berlin Blockade, the 1927–1949 Chinese Civil War, the 1950–1953 Korean War, the 1956 Hungarian Revolution, the 1956 Suez Crisis, the Berlin Crisis of 1961 and the 1962 Cuban Missile Crisis. The US and the USSR competed for influence in Latin America, the Middle East, and the decolonizing states of Africa, Asia, and Oceania.

Following the Cuban Missile Crisis, a new phase began that saw the Sino-Soviet split between China and the Soviet Union complicate relations within the Communist sphere, while France, a Western Bloc state, began to demand greater autonomy of action. The USSR invaded Czechoslovakia to suppress the 1968 Prague Spring, while the US experienced internal turmoil from the civil rights movement and opposition to the Vietnam War. In the 1960s–1970s, an international peace movement took root among citizens around the world. Movements against nuclear weapons testing and for nuclear disarmament took place, with large anti-war protests. By the 1970s, both sides had started making allowances for peace and security, ushering in a period of détente that saw the Strategic Arms Limitation Talks and the US opening relations with the People's Republic of China as a strategic counterweight to the USSR. A number of self-proclaimed Marxist regimes were formed in the second half of the 1970s in the Third World, including Angola, Mozambique, Ethiopia, Cambodia, Afghanistan and Nicaragua.

Détente collapsed at the end of the decade with the beginning of the Soviet–Afghan War in 1979. The early 1980s was another period of elevated tension. The United States increased diplomatic, military, and economic pressures on the Soviet Union, at a time when it was already suffering from economic stagnation. In the mid-1980s, the new Soviet leader Mikhail Gorbachev introduced the liberalizing reforms of glasnost ("openness", c. 1985) and perestroika ("reorganization", 1987) and ended Soviet involvement in Afghanistan in 1989. Pressures for national sovereignty grew stronger in Eastern Europe, and Gorbachev refused to militarily support their governments any longer.

In 1989, the fall of the Iron Curtain after the Pan-European Picnic and a peaceful wave of revolutions (with the exception of Romania and Afghanistan) overthrew almost all communist governments of the Eastern Bloc. The Communist Party of the Soviet Union itself lost control in the Soviet Union and was banned following an abortive coup attempt in August 1991. This in turn led to the formal dissolution of the USSR in December 1991, the declaration of independence of its constituent republics and the collapse of communist governments across much of Africa and Asia. The United States was left as the world's sole superpower.

The Cold War and its events have left a significant legacy. It is often referred to in popular culture, especially with themes of espionage and the threat of nuclear warfare. For subsequent history see International relations since 1989.