With the Afghanistan war winding down, the Arctic, already a hot button issue among Copenhagen policymakers, has become one of the main issues on the Danish foreign policy agenda. This article examines the challenges facing the Danish political-military planning in the Arctic. Danish Arctic policy reflects a wider Danish grand strategy that sees Greenland as a bargaining chip vis-à-vis the US. Danish political strategy emphasizes the region’s well-functioning cooperative order, while standing its ground in disputes with other nations. Denmark is thus willing to enhance its military deterrent in the Arctic. Military strategy focuses on handling traffic patterns in Greenlandic waters, where the Danish Armed Forces are responsible for both military defense of the realm and coast guard tasks. Danish defense planning aims to maximize regional cooperation and to diminish tensions between Denmark and Greenland.