Is 'sovereignty' a roadblock to a modern-day treaty or treaties between Indigenous peoples and the wider Australian community? In this second issues paper from the Centre's Treaty Project, Sean Brennan, Brenda Gunn and George Williams identify the different ways in which the term sovereignty is used. Domestically, it notes the range of Indigenous voices on the issue, as well as summarising government and judicial assessments of claims to Indigenous sovereignty. The different approaches taken by governments and courts in Canada, the United States and New Zealand are acknowledged and a number of objections to modern-day treaty-making in Australia are discussed. The paper concludes that debates over sovereignty will go on, as they do in Canada, the US and New Zealand, but in the meantime the concept is no necessary impediment to treaty-making in Australia.