The world has changed. The Cold War is over, and, while the nation is not yet beating its swords into plowshares, public policymakers are attempting simultaneously to accomplish two extremely difficult and seemingly opposing objectives: reducing the defense budget, while at the same time saving industrial jobs, technology, and infrastructure in the defense industrial base by converting them into a flexible, commercial infrastructure capable of supporting both defense and non‐defense needs. The outcome of this attempted balancing act will have far‐reaching defense and economic consequences for the nation.This paper explores the concept of defense conversion as it relates to the defense industry. As a corollary of conversion, the paper also explores the concept of dual‐use technology and its application to continued strength of the defense technology base. A brief overview of the applicable legislation provides some insights into how Washington has crafted political solutions to difficult technical problems. Finally, the paper will examine some of the difficulties that still stand in the way of the creation of an integrated civilian and military industrial base that could support the nation's security needs in a flexible, affordable, and publicly acceptable manner.