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South Asian region has immense strategic importance for global peace and development as it is home to approximately 2 billion people. The region includes countries like Pakistan and India who have become nuclear powers and are emerging economies with massive potentials still untapped and various sectors of economic development not performing up to the mark. The dispute between Pakistan and India remains a major hindrance in fulfilling the dream of peace in South Asia. There is a no question that the only solution lies in diplomacy. Many steps have been taken in this regard, but each attempt ends with a bitter experience. The reasons for failure of diplomatic and peaceful means of settling disputes are many and may extend beyond the domestic and bilateral scenario of both India and Pakistan but one of the major causes of the failure of such efforts is the sentimentalism blended with religious fanaticism that results in strengthening hawkish elements on both sides of the border who act as highly effective pressure groups that thwart such attempts very successfully. This research aims to answer the crucial question as to how the dream of peace and prosperity can be achieved between the two strong rival states. The research will focus on bilateral dialogues, people-to-people contacts with minimal security hindrances, exchange of intellectuals, and exchange of ideas, knowledge, and cultural values. The research also attempts to bring ―right wing‖ nationalist political factions on both sides of the border closer by arranging group discussions and exchange of views and ideas which would be instrumental in bridging the communication gap between these contesting and competing factions.