War and Combat is a performance in Mount and Blade II: Bannerlord, and you'll find yourself fighting at least one of the game's various powerful factions. You might find yourself declaring war on them, and so you will. do, you will eventually have to regroup to recover your forces and resupply your armies. The best way to achieve this is to make peace, which is an essential objective of any war.
At this time, the standard method of declaring peace with another faction, as well as declaring war against them, is displayed. For now, it's gray when you view it in the Kingdom menu. However, you can antagonize another faction enough times by looting their villages and caravans, causing them to start a war against you.
For those who want to find peace with a warring faction, you have an alternative. You have to search for one of the warring faction leaders to talk to them. As you approach them, you have the opportunity to talk about finding peace between the two of you. You can see who the leader of a faction is by checking it in your encyclopedia and pressing the Alt-left key while walking around the map. You want to locate armies with distinct names below.
Unfortunately, it is not as easy as influencing them to understand that you want to form peace. You have to trade with them. The amount to be negotiated varies. Sometimes the price of peace is a little too high, so you might have a hard time getting there.
When you come to an arrangement, you will find that the faction villages, strongholds, and armies no longer have a red outline around them. You won't have to worry about fighting them in the future unless you do something to directly oppose them.
In future updates for Bannerlord making peace should be a lot easier. You'll be able to reach out to a warring faction by referencing it in the Realm tab, but the process can work the same where you need to trade to get there.