In the fall of 1918, after over four years of war, the cohesion of Austria-Hungary collapsed. In the aftermath of the Great War, Burgenland (Western Hungary) was part of a pattern of complex territorial issues, though it was actually the smallest disputed territory between Hungary and her successor states. The region became a disputed land after the Allied Supreme Council recommended the transfer of most of it to Austria. The internal crisis in Budapest, the Habsburg restoration attempts and the activities of many militia on the ground led to an extremely dangerous situation. Diplomatic and direct military involvement of the Powers eventually resolved the issue with an agreement providing for a plebiscite on the fate of Sopron and the other smaller towns of the region. At least until 1921 Western Hungary represented an element of destabilization in Europe, while its partition was a significant event in the evolution of relations between the two new states of Hungary and Austria, and a testing ground for European diplomacy. The purpose of this article is to highlight the role of Italy in these complex events and to elucidate the contribution of its military in the formulation of clearer political strategy.