Ya’qub (r: 1478- 1491) had faced two major domestic and foreign problems at the beginning of his rule. The foreign problem, equally important, was the continuous increase in the Ottomans’ empowerment whose jurisdiction was over the lands to the west of those reined over by Ya’qub. Hence, even the smallest error or imprudence before them could pose a serious risk to Aq qoyunlu. The main question, upon which the present study is based, thus, is that considering the delicacy of the matter at that particular point of history, what type of foreign policy did Ya’qub adopt and pursue in the course of his reign? I. e. regarding the common borders between the Aqqoyunlu and the two world powers of the time (Ottoman Empire and Egypt) as well as the possibility of a threat, what political position did Ya’qub take? The findings of this study which has been conducted through an application of a historical method and the use of major historical resources bear witness to the fact that Ya’qub, considering a number of factors, had based his foreign policy on limited, though positive and peaceful, relationships with the Ottomans and Egyptians. Therefore, although at the beginning of Ya’qub’s reign, there occurred a severe military conflict between Egyptians and the Aq qoyunlu (mainly due to Egyptians’ military invasion); Ya’qub’s later peace-seeking policy and his inclination to establish friendly relationships paved the way for the final establishment of calm and peace.