The newest security alliance in the Indo-Pacific, called ‘AUKUS’ is formed with an aim of strengthening cooperation to stabilise the region. It is the acronym for Australia, United Kingdom and the United States. The pact includes Australia getting support from the US and UK to build nuclear-powered submarines, carrying conventional weapons, in Adelaide within the next two decades. It also includes sharing of cyber and quantum capabilities, artificial intelligence and advanced undersea technologies.” Sharar Mahbub Dhrubo, Research Intern at BIPSS portrays an analysis of both reactions and implications for the stakeholders of the newest agreement and evaluates how it shapes other regional cooperations in the Indo-Pacific. The paper focuses on how it architects the future of the Indo-Pacific region and could possibly lead to an arms race within the region in the upcoming decades.