The expression "Close but no cigar" refers to the tradition of celebrating a milestone with a cigar, for example, the birth of a child or the closure of a deal. It implies that while many conditions to resolve a problem have been met, the problem itself has not actually been resolved.

The phrase originates from the early part of the 20th century when cigars would be handed out at carnivals as the first prize. When someone just missed out on winning, the stall holder would say, "close but no cigar".

It is first recorded in print in Sayre and Twist's publishing of the script of the 1935 film version of Annie Oakley with the quote, "Close, Colonel, but no cigar!"