The treaty was significant because it prescribed for a population exchange between Turkey and Greece. It resulted in the forced relocation of around 1.5 million Greek Orthodox Christians from Turkey to Greece and about 500,000 Muslim Turks from Greece to Turkey. This exchange was intended to create ethnically homogeneous nation-states and minimize tensions between these groups.

Another provision of the treaty is that it established the international status of the Turkish Straits, including the Bosporus and the Dardanelles. It guaranteed their neutral status and regulated the passage of ships through these strategically important waterways. This arrangement sought to prevent the militarization of the Straits and maintain freedom of navigation. [Colonialism, Nationalism and Jewish Immigration to Palestine: Abdu´l-Baha's Viewpoints Regarding the Middle East by Kamran Ekbal p6]