Pakistan handed back a captured Indian pilot on Friday as the nuclear-armed neighbours scaled back a confrontation that has prompted world powers to urge restraint, although shelling continued in the disputed Kashmir region.
How far will the move cool tensions between the two nations? Euronews anchor Alex Morgan spoke to South Asia expert, Dr Rishi Paul to find out.
"I don't think this episode has done India or Pakistan any favours," Paul said.
"It's highlighted the fact that South Asia is a nuclear flashpoint," the expert noted.
Paul also said crisis management tools would need to evolve in the future in light of the current brinkmanship episode.