This article reconstructs the evolution of Austria’s relations with the Democratic People’s Republic of Korea’s (DPRK, or North Korea) from 1960 – the year when the first Chamber-level trade agreement was signed – until formal recognition in 1974. Moreover, it discusses the Austrian government’s deliberations regarding its approach towards North Korea, especially the question of recognition. Against the background of normalisation of relations with the Democratic Republic of Vietnam and the German Democratic Republic in 1972, this article also examines possible reasons for Austria’s decision to postpone the recognition of North Korea. More generally speaking, this study contributes to the emerging scholarship on the history of the DPRK’s relations with Europe’s neutral states during the Cold War period. The findings show that the Austrian government took a passive stance towards the DPRK’s diplomatic advances during the 1960s to avoid any actions that would have been construed as an implied recognition and, consequently, created irritation in the U.S. and also the Republic of Korea. From the late 1960s on and in light of a more favourable international environment, the Austrian government became apparently less concerned about the possibility that certain actions could be interpreted as a de facto recognition. Political and economic interests, especially the Austrian government’s close coordination with Switzerland on the question of establishing diplomatic relations with North Korea and growing trade with South Korea, led to the DPRK being recognised (only) in 1974. This study is primarily based on documents from the Austrian Ministry for Foreign Affairs. In addition, selected North Korean sources and archival material of the Austrian Parliament and the Swiss Federal Department for Foreign Affairs were used for the analysis.