India’s legal system, burdened with an ever-growing caseload, has turned to Alternative Dispute Resolution (ADR) mechanisms to alleviate pressure on courts and expedite dispute resolution. The Commercial Courts Act, 2015, marked a significant milestone in this effort by introducing mandatory pre-institution mediation for commercial disputes above a specified monetary threshold. Despite the initiative’s potential, its implementation has faced numerous challenges, including low participation, a lack of trained mediators, and concerns regarding the enforceability of mediated agreements. This article analyses the legal framework of mandatory pre-litigation mediation in India, evaluates its effectiveness, and explores the role of the Supreme Court in shaping this process. It also provides a critical assessment of the practical hurdles faced by the initiative and offers recommendations for its improvement. Ultimately, while mandatory pre-litigation mediation has demonstrated considerable potential, further institutional support and infrastructure development are essential to unlock its full potential.