To reach an agreement or understanding (with someone); to resolve a dispute or stop fighting (with someone). Alludes to the calumet used by certain Native American tribes for ceremonial purposes, such as a covenant or peace treaty. In a surprise turn of events, it seems that the environmentalist group is looking to smoke the peace pipe with the largest lobbying body of the oil industry. I don't understand why there has been so much tension between you. You need to both sit down like rational adults, smoke the peace pipe together, and get on with your lives.