The Peace of Thorn was a peace treaty formally ending the Polish-Lithuanian-Teutonic War between allied Polish-Lithuanian Commonwealth on one side, and the Teutonic Knights on the other. It was signed on February 1, 1411 in Thorun, one of the southernmost cities of the Monastic State of the Teutonic Knights.The Peace of Thorn was not politically stable. It took two other brief wars to solve the territorial disputes between the powers. However, large war reparations were a significant financial burden on the Teutonic Knights, causing political unrest and severe economic decline within their state. The Teutonic Knights never recovered their former political or military might.