The paper discusses the military and political significance of the Montenegro’s mountain Lovćen, which dominated the Austro-Hungarian naval base in the Bay of Kotor. The ambitions of Austro-Hungary to occupy this mountain through diplomatic or military means are indicated. Also pointed out are the steps of the Italian diplomacy to foil that attempt or failing this, to provide territorial compensation for their country. The Austro-Hungarian conquest of Mt. Lovćen in January 1916 was an overture to the occupation of Montenegro. Opponents of the Montenegrin King Nikola Petrović Njegoš and the Montenegrin government fabricated news on the existence of a secret agreement between Montenegro and Austria-Hungary with reference to surrendering Mt. Lovćen to the enemy without adequate defense. This had severe foreign-political and internal-political consequences for Montenegro and contributed to the vanishing of the Montenegrin state from the political map of Europe at the end of World War I. In this context, the significance of Mt. Lovćen for the identity for the Montenegrin people is analyzed, as well as its symbolic or propaganda significance for the Austro-Hungarian conqueror.