The paper examines the legal nature and practical aspects of mediation in the context of civil proceedings in Ukraine. The adoption of the Law of Ukraine "On Mediation" in 2021 marked a significant step in the institutionalization of this alternative dispute resolution mechanism. The paper analyzes the basic provisions of the law, including the principles of mediation, the legal status and functions of the mediator, and the structure of the mediation procedure. Special attention is paid to the third and fourth sections of the law, which define the implementation mechanism of mediation and amend relevant articles of the Civil Procedure Code of Ukraine. The study highlights the key advantages of mediation over traditional court proceedings: its voluntary nature, confidentiality, time-efficiency, reduced financial costs, and the preservation of interpersonal relations between parties. The paper also identifies the main obstacles to the widespread implementation of mediation in Ukraine, such as a lack of public awareness, insufficient integration into judicial practice, and the need for professional training of mediators. Drawing upon international experience, the paper argues that introducing client feedback mechanisms and adopting best practices could significantly improve the effectiveness and public perception of mediation in Ukraine. It is emphasised that mediation is a promising tool for achieving reconciliation between parties in civil proceedings, particularly in cases. The participation of the parties in the settlement of a dispute through negotiations with the involvement of a mediator allows not only to save resources, but also to preserve social ties, prevent the escalation of the conflict and reach a decision that best suits the interests of both parties. The author concludes that mediation has the potential to reduce the burden on courts and provide a more accessible and flexible form of justice. The findings emphasize the necessity of a comprehensive approach to integrating mediation into the Ukrainian legal system, including legal reforms, public education, and institutional support.