Peaceful settlement of disputes as an alternative method of judicial proceedings has existed from the very beginning of disputes. Despite the many advantages, peaceful dispute resolution is not the first choice the parties choose. The reason for this is insufficient information of the public or citizens about possible alternatives to court proceedings. Present paper can be observed in three parts. The first part refers to a more precise definition of the term peaceful dispute resolution, then mediation as one of the most well-known methods. The paper also further lists the characteristics of mediation, disputes that are considered suitable but also unsuitable for mediation, as well as a brief review of the history of alternative dispute resolution methods. The second part of the paper refers to the development of peaceful dispute resolution in the Republic of Croatia, i.e. a historical overview of the institute of mediation (peaceful dispute resolution) before the entry into force of the Law on Conciliation in terms of special regulations that defined mediation. The third part of the paper prioritizes legal sources, i.e. the Law on Conciliation as lex generalis, amendments to that law, the basic postulates of the mentioned, the phase of mediation, but also special regulations that point to the peaceful resolution of disputes and finally the Law on Peaceful Dispute Resolution and novelties adopted by the aforementioned.