Yemen has historically been a battleground for great power rivalry and today remains one of the most critical geopolitical flashpoints in the Middle East, shaping global balances. This chapter traces Yemen’s geopolitical transformation from the Cold War to the present, analyzing the security, economic, and ideological interests of key actors, such as the United States, Saudi Arabia, and Iran. The strategic significance of the Bab al-Mandab Strait, the rise of armed groups, deep-rooted societal fragilities, and structural crises have turned Yemen into a persistent arena of conflict. At the same time, through a scenario-building approach, the chapter explores both optimistic and pessimistic trajectories for Yemen’s future—ranging from international peacebuilding efforts and regional reconciliation to prolonged instability driven by external rivalries. This compelling narrative reveals that Yemen is not merely a regional crisis but a core theater of global power competition in the twenty-first century.