Why do states create weak international institutions? Frustrated with proliferating but disappointing international environmental institutions, scholars increasingly bemoan agreements which, rather than solving problems, appear to exist “for show.” This article offers an explanation of this phenomenon. I theorize a dynamic of deflective cooperation to explain the creation of compromise face-saving institutions. I argue that when international social pressure to create an institution clashes with enduring disagreements among states about the merits of creating it, states may adopt cooperative arrangements that are ill-designed to produce their purported practical effects. Rather than negotiation failures or empty gestures, I contend that face-saving institutions represent interstate efforts to manage intractable disagreement through suboptimal institutionalized cooperation. I formulate this argument inductively through a new multi-archival study of conventional weapons regulation during the Cold War, which resulted in the oft-maligned 1980 UN Convention on Certain Conventional Weapons. A careful reconsideration of the negotiation process extends and nuances existing IR theorizing and retrieves its historical significance as a critical juncture and complex product of contesting diplomatic practices.