In 2000 Abramovich and Karu proved that any dominant morphism $f\:X\to B$ of varieties of characteristic zero can be made weakly semistable by replacing $B$ by a smooth alteration $B'$ and replacing the proper transform of $X$ by a modification $X'$. In the language of log geometry this means that $f'\:X'\to B'$ is log smooth and saturated for appropriate log structures. Moreover, Abramovich and Karu formulated a stronger conjecture that $f'\:X'\to B'$ can be even made semistable, which amounts to making $X'$ smooth as well, and explained why this is the best resolution of $f$ one might hope for. In this paper, we solve the semistable reduction conjecture in the larger generality of finite type morphisms of quasi-excellent schemes of characteristic zero.