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Courtesy of the Museum of the American Indian, Heye Foundation, New York Top Questions Where was the Battle of the Little Bighorn fought? The Battle of the Little Bighorn was fought at the Little Bighorn River in southern Montana Territory, U.S. Why did the Battle of the Little Bighorn happen? The Battle of the Little Bighorn happened because the Second Treaty of Fort Laramie, in which the U.S. government guaranteed to the Lakota and Dakota (Yankton) as well as the Arapaho exclusive possession of the Dakota Territory west of the Missouri River, had been broken. Why is the Battle of the Little Bighorn significant? ....