The article critically looks at relevance of the US alliance system in the Asia-Pacific in the context of the changing nature of threats and challenges that the U.S. is confronted with in the light of American military intervention in Afghanistan and Iraq. The paper argues that the American policy in Asia, which so far has been premised on bilateral alliances and forward deployment, is likely to undergo fundamental changes because the principal partners, South Korea and Japan, may not be very useful either in counter-terrorism efforts or low-intensity wars. This, in turn, may enhance India’s importance to US policies in the Asia-Pacific.