The Grand Ethiopian Renaissance Dam (GERD) project is a cornerstone of Ethiopia's economic development and energy security ambitions, and Africa's largest hydroelectric project. It aims to generate significant domestic and export electricity, playing a vital role in Ethiopia's growth strategy. However, this initiative has escalated tensions with downstream nations, particularly Egypt and Sudan, which are concerned about the dam's potential impacts on their water supplies and agricultural systems. The conflict is rooted in deep-seated issues related to water rights and the equitable distribution of the Nile's resources, with Egypt perceiving the GERD as a threat to its historical entitlements established by colonial-era agreements. Efforts to mediate the GERD dispute have involved various regional and international actors, including the African Union, the United States, and the European Union, but have often resulted in limited progress and inconclusive outcomes. Factors contributing to the challenges in mediation include a lack of trust among the involved parties, differing national priorities, and the absence of a comprehensive framework to address the complex interdependencies within the Nile Basin. This paper seeks to analyze the dispute management process surrounding the GERD, exploring the historical context, national interests, and negotiation challenges. By doing so, it aims to provide insights into the dynamics of the conflict and propose recommendations for future mediation efforts that prioritize inclusive dialogue, trust-building, and sustainable water management practices among all stakeholders.