Khmer Rouge was on the verge of collapse as Pol Pot died in April 1998. This meant the obstacle to establishing a lasting peace in Cambodia was removed. Pol Pot was on the side of Ranariddh on the antagonistic phase in July 1997. The general election held on July 26, 1998 was a free election. All of the 39 parties competed one another for 122 seats

As a result, Hun Sen's CPP won 64 seats (41.4%) and Ranariddh's Funcinpec Party won 43 seats (31.7) second to the CPP. The Sam Rainsy Party led by Sam Rainsy, the former Minister of Finance, who was expelled from the Funcinpec Party won 15 seats (14%). Other minor political parties gained valid votes of 12.2% but didn't won any seats because they split into 36 parties all over the country.

The Sam Rainsy insiting on the war against the violation of human rights and illegality and corruption appealed to people who were tired of the political dispute between Hun Sen and Ranariddh and received the support of students and laborers. The CPP in control of the Constitutional Committee, the National Election Administration Committee, and the press became the government party in a very advantageous situation. But the CPP failed to form a single government because they did not hold a majority in the National Assembly. Cambodian constitution stipulated a party could not set up a single government unless it held a majority in the National Assembly.