The present study was designed to augment existing knowledge on the use of third-party mediation in settling disputes in the barangay. Its main objective was to determine if the Lupon settled disputes involving public policy issues, or those which go beynd interpersonal squabbles and center on problems of public concern. It also aimed to determine the sustainability of the agreements to cull the potential value of third-party mediation, and ascertain the capability of the barangay court.