Do you know what a compromise is? It's when two people or groups who want different things agree to share or divide something so that they both get some of what they wanted.
Well, a long time ago in 1867, there were two countries called Austria and Hungary that were ruled by the same king but had different languages, cultures, and ways of doing things. They were having a hard time getting along because they each wanted more power and control over their own country.
So, they decided to make a compromise called the Austro-Hungarian Compromise of 1867. This means that they agreed to share the power and work together as one country but still keep some of their own traditions and rules.
The king became the leader of both countries, but they had their own parliaments or groups of politicians that made decisions for their own country. They also had their own languages, schools, and laws.
This compromise helped to bring peace between the two countries and allowed them to work together for their common goals while still respecting their differences. It was like sharing a toy with your friend and taking turns playing with it.