Competition among countries has evolved from just on Earth but into space as space technology and space power is a key attribute in the world today.Today space technology has spread,due to the enormous development,into every sector of life in the Earth for the benefit of mankind.Every country has the ambition to be a part of the space initiative.Asia Pacific Space Cooperation Organization (APSCO) is an organization that tries to promote space activities through cooperation in the Asia Pacific region.This paper attempts to explore the nature and categories of potential conflict that may arise under the APSCO framework program.Furthermore,it also endeavors to establish an effective and better dispute settlement mechanism under the overall APSCO framework.Finally,this paper introduces the institutional framework and working procedures of the arbitration body for future smooth cooperation and space exploration by APSCO.