Space law is still an embryonic area in the international law. Space industry comprises of enormously diversified members starting from states, national and multinational organisations, international organisations to private parties indulged in different activities and as such a robust international dispute resolution mechanism equipped to deal with the highly specialised, technologically complex and evolving area of activity is highly critical. The PCA Optional Rules was adopted on 06 December, 2011 and is a significant step as it sets up an effective resolution of outer state disputes by establishing international arbitration as the principle method of outer space dispute resolution and further fills the lacuna of its erstwhile regimes namely, the Outer Space Treaty and Liability Convention. The Optional PCA Rules takes into account, the complexity, technicality, accessibility, confidentiality, enforceability, neutrality, feasibility and accessibility of the parties and issues revolving around the outer space disputes. The author in this paper provides a critical analysis of the most significant provisions under the PCA Optional Rules.