European Neighbourhood Policy (ENP) was launched by the European Union (EU) to use its soft power with the aim of providing stability and prosperity in its immediate periphery where it has no prospect of enlargement in the near future. This study aims to analyse whether the European Neighbourhood Policy has met the expectations with regard to EU-Azerbaijan relations. The main argument is that, although it has been functional since 2006, ENP has not delivered the desired results in EU-Azerbaijan relations. The solution of the Karabagh conflict as the most important security issue for Azerbaijan and securing gas and oil supplies for the EU had been managed through other mechanisms. The impact of ENP was also limited with regard to good governance and free trade promotion. This study first examines the features and basic documents of the ENP, then discusses specific programs designed for the European Neighbours such as Black Sea Synergy and Eastern Partnership. In the second part, European Union-Azerbaijan relations are examined with regard to the contents and results of EU-Azerbaijan Action Plan.