Much of the existing literature describes a successful peace process as the embellishment of an agreement. In fact, signing a peace agreement does not necessarily mean a lasting peace. The peace process between Gerakan Aceh Merdeka (GAM) or the Free Aceh Movement and the Government of Indonesia (GoI), or the central government, provides a unique and remarkable example of the dynamics of a peace process. This thesis presents a comprehensive analysis of the peace process in Aceh. Institutional, structural and historical elements of the process are thoroughly reviewed to capture its dynamics. This thesis indicates that the failure and success of a peace agreement substantially depend on the perception of the two conflicting parties of the existing conditions that shape their motivation and optimism concerning the peace process. Hence, certain conditions that can shape mutual motivation of both conflicting parties are instrumental in resolving dispute and building peace. The present thesis offers a useful lesson and a significant contribution for policy makers, scholars, and peace practitioners in conflict resolution, peace-building and peace implementation efforts in Aceh and beyond.