The Federated States of Micronesia (FSM) is situated in a strategic area on the northern frontline of China’s push into the Pacific region. The presence of the United States (US) in FSM and more widely in the western part of Micronesia under the terms of the Compact of Free Association (COFA) means the region is becoming an increasingly contested oceanic space. The FSM has political relationships with both superpowers: China and the US. Australia, an ally of the US and a major player in the Pacific, has had closely aligned security interests with FSM, and the countries have maintained enduring bilateral relations. The purpose of this In Brief is to make the case for enhanced Australian engagement with FSM in a changing geopolitical environment.