> To stop a conflict and make peace
> To stop an argument and become friends again
This one dates back to the early times North America when the Puritans were in conflict with the Native Americans.
When negotiating peace, the Native Americans would bury all their hatchets, knives, clubs, and tomahawks. Weapons literally were buried and made inaccessible.
Example
> After years of fighting over who should have gotten Dad’s money, my brothers finally buried the hatchet
> Her uncalled for insinuations against him stopped the chance for burying the hatchet and move foreward.