Master thesis "Strategy of Armenia-Azerbaijan conflict resolution by participating states and key external actors"deals with the conflict between Armenia and Azerbaijan, in the center of which lies the dispute about the Nagorno Karabakh. Using qualitative analysis of grand strategy of Armenia and Azerbaijan and grand strategies of key regional and external stakeholders it uncovers interests, objectives and postures of the players in their strategic environment. On the basis of comprehensive analysis of the grand strategies I assess their effectiveness in relation to fulfillment of the state's goals and also the role, which conflict between Armenia and Azerbaijan plays in their strategy. In theoretical part I present short overview of the evolution of the concept of grand strategy and also operationalization of assessment of the strategies. In the second chapter I describe the historical background of south Caucasus, which is crucial for understanding of the conflictive nature of some interstate states in the region. In the third chapter I analyze grand strategies of Armenia, Azerbaijan, Iran, Turkey, Russia, USA and EU. In the last chapter I summarize the effectiveness and relevance of chosen strategies.