Each country forms its foreign policy based on internal and external environment in view. National interest occupies central point. Japan also knitted foreign policy to protect its national interest. Two main sources contributed in formative phase of foreign policy of Japan. Firstly, its constitution came into force in 1947. Article 9 renounces war and provides for creating pacifist country. Secondly, Treaty signed between the U.S and Japan in 1952. It brought latter under the shield of former. This arrangement left impact on foreign policy of Japan. However, it amongst other contributed towards growth and development of Japan from the ashes of the World War II. Now Japan is developed country and third biggest economy of the world. Japan’s foreign policy has achieved success in its objectives. Simultaneously, it has certainly challenges. A few are discussed here. Firstly, Japan is making endeavors for nuclear weapon free world. It is signatory to Non-nuclear Proliferation Treaty (NPT) since 1976.But number of countries having nuclear weapons has increased with the passage of time. Japan has expressed concerns on nuclear armament in the region of South Asia and nuclear program of North Korea. Secondly, maritime peace is also important for Japan. It is natural resources deficient country. It has to import oil from the Persian Gulf countries etc through ships. It also imports other things. Thus, peace in sea waters is crucial for it. North Atlantic Treaty Organization, established in 1949, was product of the cold war. Warsaw Pact, created in 1955, assembled the allies of the former Soviet Union on one platform. The Pact has lost its existence. Probably NATO needs reason of its continuity. Japan needs to be more vigilant in this scenario Thirdly, aging society is creating problem of availability of young labor force. Thus, Japan will have to import cheap manpower aimed at keeping prices of its products competitive and within reach of the consumers in different regions of the world. Fourthly, Japan is an economic power. Its economy is mainly based on production and selling of goods etc. The regions having big population are important markets for Japan. For this peace is imperative. Fifthly, controversy and conflict between the United States and Russia etc is also challenge for Japan. Tension between these countries may endanger peaceful environment in different regions. This may prove unfavorable to Japan. Sixthly, China-Pakistan Economic Corridor has land and maritime routes which are important for the interests of Japan. All the countries have been invited to take part in the corridor. How Japan moves future will decide it. Seventhly, it is generally considered that the U.S has major impact on Japan’s foreign policy. However, Japan has exercised its independent view and stand on number of occasions. For example, oil embargo in 1973 and the U.S President’s decision of shifting his country’s embassy from Tel Aviv to Jerusalem. How Japan manages this spirit in future is also a challenge. Eighthly, terrorism is threat to mankind individually and collectively. Terrorism has different manifestations. Japan remained victim of terrorist acts in 1980s and 1990s. It played pivotal role in War on Terror. However, due to increasing momentum of terrorist acts in different countries of the world, Japan may keep itself constantly engaged in nabbing terrorism. Ninthly, reforming and restructuring of the United Nations. In past, Japan made endeavors to muster support of the U.N members for becoming permanent member of Security Council of the body. It wanted to have such status on the basis of its efforts for nuclear disarmament. Tenthly, all powers including Russia want to protect their interests in nook and corner of the world. Russia is trying to fill a gap occurred due to disintegration of the Soviet Union. It has landed its forces in Venezuela despite warning of the United States. This may trigger new phase of cold war with weak super power of Russia. Subsequently, it may escalate to other regions. Eleventh, Japan has interests in the region of Central Asia. The competition of getting influence in the region is going on. Japan will have to develop strategy for protecting its interests there without indulging in row between military powers. Twelfth, North Atlantic Treaty Organization, established in 1949, was product of the cold war. Warsaw Pact, created in 1955, assembled the allies of the former Soviet Union on one platform. The Pact has lost its existence. Probably NATO needs reason of its continuity. Japan needs to be more vigilant in this scenario. Thirteenth, post cold war and 9/11 periods have subsided the importance of geo-politics. Geo-economics has emerged as one of the main foundations of bilateral and multilateral relations. Economy needs to keep pleasant relations with the countries having territorial etc disputes. How Japan manages its relations with Russia and other countries to get its interests fulfilled without compromising is also a challenge. Fourteenth, the region of South Asia is important for Japan. Its diversified issues require Japan to balance its relations with the regional countries without indulging in regional politics. Fifteenth, the United States is desirous or has begun occupying or installing puppet governments in oil producing countries such as Iraq and Libya etc. Such action may increase Japan’s dependence on the U.S to keep oil supply safe and protected. In this scenario, how Japan maintains its independent exposure on foreign policy fronts may be a great task. Sixteenth, the U.S is in process to make possible arrangements for withdrawal of its forces from Afghanistan. Once forces are out and Taliban get success to establish their rule in the country, the region of Central Asia is likely to be influenced. The change under influence may have favorable or unfavorable impact on Japanese interest in the region. Lastly, while addressing 198th session of Diet (Japanese parliament), Taro Kono, foreign minister of Japan said that his country will make more contribution than before to the global issues. The issues which threaten global peace are important. It may be a big challenge for Japan to convince parties of disputes for their resolution. The writer is an author and has a doctorate in Political Science