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The claims of China and Japan on Senkaku/Diaoyu Islands have made East China Sea a centre of global attention. This East China Sea issue is getting international attention due to the strategic agreement between US and Japan. This agreement enables US Navy to establish bases and patrol in the disputed area. China has shown deep concerns on such agreement. China perceives it a territorial threat to her sovereignty. The rich natural resources of island have urged both nations to claim it as theirs. Both nations claim that these islands are their integral part. This claim is supported by historical evidences from both sides. Also both countries want to establish a strong strategic position in Asia-Pacific region. The role of international Law will also be important to resolve this conflict.