This master thesis will analyse the course and main principles of the traditional mediation procedure as we know it from history, where the parties are simultaneously present at the meetings that are held. On the other hand, the modern way of conducting mediation without the simultaneous presence of the parties will also be analyzed - the so-called online mediation. The main principles of conducting the procedure are the same for both traditional and online mediation. They are both informal and dispositive procedures and they strive to preserve a high confidentiality of information from the procedure. With the emergence and popularization of the Internet, as well as technology in general, online mediation is gaining more and more on its importance. It is very suitable for solving all kinds of disputes, especially international commercial disputes. Due to its efficiency, low costs and speed, more and more participants in international market are choosing online mediation as an alternative way to resolve their disputes. How popular online mediation really is shows its wide implementation around the world. It is also implemented in Croatia within various associations.