This study focused on investigating the significance of peace education to manage institutional conflict at Addis Ababa University, Ethiopia. As conflict is inevitable in all settings, the need for looking at diversified ways of mitigating conflict is paramount and mandatory. Higher education should serve communities and nations in generating solutions on one hand and as well generating educated human power equipped with basic knowledge, skills and required attitude, on the other hand. The situation observed in the study area of AAU and other universities is a concern because the level and magnitude of conflict being experienced in university campuses is increasing. Taking this into consideration, the study employed a qualitative inquiry and collected data from students, academic staff from a variety of departments, the student administration wing student, the Institute of Peace and Security Studies and support staff. The findings of the study tried to identify the nature and cause of conflict. Moreover, it collected data regarding the measures currently taken by the university and as well investigated to what extent peace education can serve as an instrument to manage institutional conflict in AAU. Most of the conflict types were found to be dysfunctional, which involves the affective domain based on the feelings and emotions of the conflicting parties, mainly students to each other. It was injected by ethnic conflict and almost no dialogue is held to resolve the conflicts among them. On the other hand, turbulent situations in the society are enacted at the university, with students entering into conflict demanding their ethnic groups’ democratic and human rights. When conflicts arise, conflict resolving mechanisms are traditional with the university resorting to the use of the external police force with dire consequences such as imprisonment, detainment and even death. The study thus investigated and revealed the potential of peace education as an innovative solution to resolve conflict collaboratively thus satisfying all parties. / Educational Management and Leadership / Ph. D. (Education Leadership and Management)