A renewed push for Alternative Dispute Resolution (ADR) in India has revived interest in traditional, indigenous and community-based mechanisms of dispute resolution. Darul Qaza represents a historically rooted institution within the Muslim community aimed at resolving matrimonial, family, community and civil disputes through principles grounded in Islamic jurisprudence. However, its legal status, constitutional legitimacy and intersection with the formal statutory framework remain subjects of complex debate. This paper investigates the operational framework of Darul Qaza through the lens of modern mediation principles, such as voluntariness, accessibility and party autonomy while evaluating its potential transformation into recognized private mediation centers within India’s formal ADR ecosystem. It further identifies key challenges including enforceability, legal validity, gender justice concerns, secularism, debates around public perception and overlap with formal courts of law. This paper argues that instead of viewing Darul Qaza as parallel judicial systems, they may be restructured as voluntary community mediation centers functioning within the statutory safeguards. Such an integration can strengthen access to justice, reduce litigation burden, and preserve cultural autonomy while upholding constitutional values. The paper proposes evolving a reform-oriented model that harmonizes community-based dispute resolution with constitutional policies, reflecting the broader transformation of traditional justice systems within modern democracies. The paper explores avenues for future collaboration between the indigenous and cultural ADR practices of Darul Qaza and conventional modes of conflict resolution within the modern Indian ADR regimen. It further proposes mediation-friendly reforms that can leverage the widespread social acceptance of Darul Qaza, thereby offering a localized, cross-cultural model for efficient dispute resolution.