After the Peloponessian wars Sparta took over the leadership of Hellas from Athens. One of the results of the dissolve of the Delian League was that the differences between oligarchs and democrats became more distinct, a contrast which also had become more and more one between rich and poor during the fourth century. The Spartan reformers often did not have the experience and knowledge to actually make a big difference, and the in 431 by Sparta promised freedom for all Greeks also proved to be an illusion. The allies of Sparta, especially Thebes and Corinth, felt mistreated as they did not profit from the victory of their ally Sparta.

King Agesilaus of Sparta realised that Sparta most of all needed the goodwill of the other Greek Poleis. He attempted to realise this by changing his attitude towards the Persian empire, and by attempts to liberate the Greek colonies in Asia Minor from 396 till 394, which were placed under Persian supervision in 404. One of the first actions was to assist prince Cyrus with a rather large army of Greeks in his attempt to take over the throne.

During the battle at Cunaxa his army got defeated and 10.000 Greek warriors were forced to fight themselves a way back from the heart of Asia Minor towards Hellas. This expedition is known as the march of Xenofon, named after their leader. Persia of course wanted revenge and sent out a fleet to destroy the Peloponessian fleet, that ironically had been financed with Persian money. During the battle at Cnidus the Persian fleet under an Athenian commander crushed the combined Peloponessian fleet.

Thanks to the feelings of dissatisfaction Persia also did not have much troubles to form a coalition against Sparta. Besides Corinth, Thebes, and Argos did Athens take place in this alliance. Persian money had quickly rearmed Athens, and slowly it started to regain its power. This Corinthian war dragged on from 395 till 386, when Persia politically interfered. The result was the peace of Antalcidas or King's Peace, which imposes Persian-backed control by Sparta on Hellas. Sparta had become so weak during these Corinthian wars that Persia supported it now to keep the power in Hellas in balance. Sparta became a sort of guarantor of the peace, and had to come in action, supported by Persia, when the agreements were violated.