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Another big change was in the country's name, it was changed to the State of Cambodia (SOC), while the KPRP (who currently ruled Cambodia) changed their name to the Cambodian People's Party. An attempt to have a free-market economy just increased the gap between the rich and the poor with many government officials becoming millionaires. In 1991, the UN, Cambodia, and other interested people came to an agreement to end the Cambodian conflict.

A United Nations Transitional Authority (UNTAC) and a Supreme National Council (SNC) were molded and was comprised of members from different factions within Cambodia. The agreement in Paris and the UN protectorate started competitive politics in Cambodia, something they hadn't seen for about 40 years. In May 1993, UNTAC sponsored an election for the national assembly, which ended up ousting the military regime.

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The Cambodians wanted a royalist party, FUNCINPEC, but Hun Sen, who won the second bigest number of seats, refused to give up his power. Fortunately a compromise was reached and a government was formed with two prime ministers, FUNCINPEC had the first prime minister, Prince Norodom Ranariddh and Hun Sen became the second prime minister.