This thesis explores the actual impact of the International Criminal Tribunal for the former Yugoslavia (ICTY) on the reconciliation process in Bosnia-Herzegovina and analyses possible reasons for this impact. It is a qualitative case study based on in-depth interviews, predominantly with Bosnian Muslims in Sarajevo and staff of the ICTY. The main argument of the thesis is that although the ICTY is believed to be a legitimate and necessary institution, it does not reach its full potential to positively contribute to stable peace. This is due to factors within the ICTY and Bosnia itself. The most notable factor is the politico-economic situation in Bosnia, which paves way for political figures to manipulatively use the Tribunal’s work, and the lack of national initiatives for reconciliation. The harsh economic situation also means that the average Bosnian have more primary concerns. The fact that alleged criminals such as Radovan Karadzic are allowed to continue their nationalist rhetoric in the courtroom, as well as the perceived lenient sentences and the hailing of war criminals in the home communities, adds to the frustration and resentment felt by many survivors. All in all, the data collected suggests that the ICTY currently acts to further divide rather than reconcile people within Bosnia. However, it is hoped that as more actors enter the public arena, the judgments of the ICTY will be used more constructively in the trans-generational process that reconciliation is.