My contention is that the formerly Egyptian territory Israel gained in the Six Day War was the key motivation in Egypt’s signing of the Camp David Accord with Israel, the hardest negotiated concession Israel made and as such, was the principal factor for peace between the two countries. This essay seeks to understand the role Israel’s territorial gains of the Sinai Peninsula and the waterways around it played in securing its peace with Egypt. It will examine Israeli and Egyptian leadership, their decisions, the external influences on their decisions, and the importance of territory in peace negotiations and the Camp David Accord between Israel and Egypt. It will focus on the time between the end of the war and the signing of peace treaties, and does not consider ancient Arab and Jewish territorial claims.