Thailand and Cambodia have agreed to an "immediate and unconditional ceasefire" after five days of fighting at their border killed at least 33 people and displaced tens of thousands.
"This is a vital first step to a de-escalation and a restoration of peace and security," said Malaysian Prime Minister Anwar Ibrahim, flanked by his Thai and Cambodian counterparts, as he announced that hostilities would end at midnight.
Thailand initially rebuffed his offer to mediate but agreed after US President Donald Trump said tariff negotiations would not proceed until "fighting STOPS".
Tensions over the century-old border dispute had ramped up in May after a Cambodian soldier was killed in a clash.
Thailand imposed restrictions on citizens and tourists heading into Cambodia via land, while Cambodia banned some imports from Thailand, including fruits, power and internet services. Local Cambodian outlets reported that hundreds of thousands of workers had returned from Thailand since May.
The situation escalated last week, after a Thai soldier lost his leg in a landmine explosion. Thailand closed some of its border crossings with Cambodia, expelled their ambassador and recalled its own.
Both sides exchanged gunfire early last Thursday, with each claiming the other had triggered the conflict.
Many of the casualties on the Thai side have been civilians in villages hit by rockets, according to Thailand's army. Cambodia said 13 people had been killed so far on its side, including eight civilians.
Shells and rockets continued to land in both countries even as the peace talks were under way in Kuala Lumpur on Monday.
Anwar said Malaysia and other members of the regional bloc, Association of South East Asian Nations, or Asean, were on hand to help monitor the ceasefire.
Both sides will need to agree to pull their armies, which have now been greatly reinforced, back from the border, and to accept some kind of independent monitoring, to prevent further clashes.
Cambodia's Prime Minister Hun Manet described it as a very good meeting that he hoped would immediately stop the fighting. Cambodia has been pushing for a ceasefire since Friday, as its outgunned forces have been driven back by the Thai military.
Acting Thai PM Phumtham Wechayachai spoke briefly, promising to honour the ceasefire.
