The objective of this thesis is to analyze naval developments in the countries abutting the Baltic Sea. Major international security events have radically altered the political landscape surrounding the region. Fundamental changes to the regional security environment are affecting naval building and modernization plans. This region should be of primary concern to the United States political and naval leadership because it comprises one of the world's largest concentrations of naval combatants. The navies deployed in the Baltic Sea are highly capable, and the geographic importance of the region has predicated a unique pattern of naval development. As regional threats to international security emerge, littoral naval warfare will become increasingly difficult to manage. Examination of the Baltic naval balance should provide a useful tool for monitoring national intentions in that region as well as forecasting future littoral naval threats elsewhere.