Ceasefire is good for dealing with god powers that enhance an opponent's army such as Flaming Weapons or Bronze. It is also effective for when a player is caught off-guard by an attack and needs to buy some time to escape or form a counterattack. In team battles, Ceasefire is useful for helping a defenseless player making time to bring the troops for help the player in trouble. During the ceasefire is an excellent time to scout out enemy bases or position an army in preparation to attack the enemy where they are more vulnerable.
As of the Tale of the Dragon expansion, Ceasefire also has the added effect of stopping Chinese Monks from converting units. With the introduction of the Physician, the player may also use this power to bring back their troops at full health.