Abstract
Federalism has become increasingly used as a tool of conflict resolution in the post-Cold War era. This contribution discusses the rationale in using federalism as a tool of peace-building, conflict resolution and democratisation in deeply divided, ethnically heterogeneous and post-conflict societies. In doing so, it is highlighted how federalism can serve as an acceptable and viable solution for different ethnic groups because of its emphasis on autonomy and territorial integrity. The contribution also demonstrates that federalism is not able to solve all problems in ethnically heterogeneous societies and that further research is needed in order to understand the conditions in which federalism can be used to end conflict and bring peace and democracy to divided countries.