‘The Palace of Illusions’ by Chitra Banerjee Divakaruni, is an essential retelling of the Mahabharata in the form of a revisionist account by Draupadi, the wife of the pancha-Pandava brothers. The scope of this paper is to engage in an analysis gauging whether the mechanism of mediation would have worked favourably to both the parties, rather than a war causing immense destruction and death. The paper goes through an an overview of the mythological conflict, followed by a detailed analysis of both parties. Namely, listing their specific interests in a mediation, followed by their respective BATNA's and WATNA's (best and worst alternatives to a negotiated agreement), and the possible desired outcome of the Pandavas and Kauravas. The paper also touches upon the role played by Krishna, as a facilitated negotiator in the Epic, and the consequences the role. Finally, referring to Glasl's model of conflict escalation, there is an attempt to relate the feasibility of such processes of alternative dispute resolution to contemporary conflicts.