East Asia offers a fertile ground for applying dominant theoretical perspectives in International Relations and understanding their relevance and limitations. As this region has seen much conflict and cooperation historically and is re-emerging as a key theater of great power competition in the 21st century even when states maintain high levels of economic interactions, our understanding of the regional order will be enhanced by the theoretical tools available in the larger mainstream IR perspectives. The existence of a peculiar regional order of no war, yet a number of simmering disputes (along with high levels of economic interdependence) can be characterized as cold peace which deserves an explanation. The paper applies two variants of realism—balance of power and hegemonic stability – and the key arguments in liberalism to analyze the cold peace in Northeast Asia and normal peace in Southeast Asia from a historical perspective. It finds both grand theoretical approaches have partial applications for understanding the East Asian order. A hybrid approach is more valuable to better explain regional order during diverse time periods and different sub-regions of East Asia. Although the presence of both hegemony and balance of power can prevent major wars for a period, they do not help resolve the pre-existing disputes. Deepened economic interdependence mitigates some spiraling tendencies as states fearful of losing too much economically do not escalate crises beyond a point.