Danish foreign policy is founded upon four cornerstones: the United Nations, NATO, the EU, and Nordic cooperation. Denmark also is a member of, among others, the World Bank and the International Monetary Fund; the World Trade Organization (WTO); the Organization for Security and Cooperation in Europe (OSCE); the Organization for Economic Cooperation and Development (OECD); the Council of Europe; the Nordic Council; the Baltic Council; and the Barents Council. Denmark emphasizes its relations with developing nations. Although the government has moved to tighten foreign assistance expenditures, it remains a significant donor and one of the few countries to exceed the UN goal of contributing 0.7% of GNP to development assistance.

In the wake of the Cold War, Denmark has been active in international efforts to integrate the countries of central and eastern Europe into the West. It has played a leadership role in coordinating Western assistance to the Baltic states (Estonia, Latvia, and Lithuania). The country is a strong supporter of international peacekeeping. Danish forces were heavily engaged in the former Yugoslavia in the UN Protection Force (UNPROFOR), in IFOR/SFOR as well as in KFOR.

Denmark has been a member of NATO since its founding in 1949, and membership in NATO remains highly popular. There were several serious confrontations between the U.S. and Denmark on security policy in the so-called "footnote era" (1982-88), when a hostile parliamentary majority forced the government to adopt specific national positions on nuclear and arms control issues. With the end of the Cold War, however, Denmark has been supportive of U.S. policy objectives in the alliance.

Danes have enjoyed a reputation as "reluctant" Europeans. When they rejected ratification of the Maastricht Treaty on June 2, 1992, they put the EC's plans for the European Union on hold. In December 1992, the rest of the EC agreed to exempt Denmark from certain aspects of the European Union, including a common defense, a common currency, EU citizenship, and certain aspects of legal cooperation. On this revised basis, a clear majority of Danes approved continued participation in the EU in a second referendum on May 18, 1993, and again in a referendum on the Amsterdam Treaty on May 28, 1998.

Since September 11, 2001, Denmark has been highly proactive in endorsing and implementing United States, UN and EU-initiated counter-terrorism measures, just as Denmark has contributed substantially to the ISAF in Afghanistan and the neighboring countries. In 2003, Denmark was among the first countries to join the "Coalition of the Willing" and supplied a submarine, corvette-class ship, and military personnel to the coalition's effort in Iraq to enforce UN Security Council Resolution 1441.