The article analyses Mexico’s foreign policy toward the countries of Latin America and the Caribbean. What emerges is a picture of the real scope and limitations of Mexico’s projects in the region in the context of its relations with the US, as well as various efforts to maintain the delicate balance between the country’s internal and external policies. Mexico’s relations with Latin American countries also serve as an illustration of the way in which it tries to overcome its complex geopolitical situation as a neighbour of the United States, the regional leader. To highlight the evolution of Mexican policy toward Latin America, the first part of the article discusses its specifics, the re-evaluation it was subjected to as the country gradually embraced democracy, and then – using examples from different governments – new elements and directions in the country’s engagement.