Following a two-month congress between the Ottoman Empire on one side and the Holy League of 1684, a coalition of various European powers including the Habsburg Monarchy, the Polish-Lithuanian Commonwealth, the Republic of Venice and Peter I of Russia, a treaty was signed on January 26, 1699. The Ottomans ceded most of Hungary, Transylvania and Slavonia to Austria while Podolia returned to Poland. Most of Dalmatia passed to Venice, along with the Morea (the Peloponnesus peninsula), which the Ottomans regained in the Treaty of Passarowitz of 1718.
The Treaty of Karlowitz marked the beginning of the Ottoman decline, and made the Habsburg Monarchy the dominant power in Central Europe.