The Simla Agreement, also spelled Shimla Agreement, was a peace treaty signed between India and Pakistan on 2 July 1972 in Shimla, the capital city of the Indian state of Himachal Pradesh. It followed the Indo-Pakistani War of 1971, which began after India intervened in East Pakistan as an ally of Bengali rebels who were fighting against Pakistani state forces in the Bangladesh Liberation War. The Indian intervention proved decisive in the war and led to East Pakistan's breakaway from its union with West Pakistan and the emergence of the independent state of Bangladesh.

Shimla is the capital and the largest city of the northern Indian state of Himachal Pradesh. In 1864, Shimla was declared as the summer capital of British India. After independence, the city became the capital of East Punjab and was later made the capital city of Himachal Pradesh. It is the principal commercial, cultural and educational centre of the state.