This chapter starts off by explaining that we are in the midst of a critical historical juncture with a record number of wars and conflicts around the world, calling for urgent action. Next, we discuss in depth three common but disastrous misconceptions, namely that shady deals leaving autocrats in power can bring peace, that “buying” peace through simple cash transfers works, and that charm offensives and communication efforts suffice to do the job. Drawing on a number of examples, the book highlights the pitfalls of these common misconceptions before turning to success stories. Illustrated by examples of the successful postwar reconstruction of Germany and Japan, the fall of apartheid in South Africa and democratization of Uruguay, Chile and Peru, the chapter then formulates the key components of what is called the peace formula – a set of key policies that constitute crucial ingredients for a successful and lasting pacification process. Finally, it is stressed that to counter distorted incentives for peace we need smart idealism – pairing good intentions with evidence-based policy knowledge.