This study examined the feasibility and short-term effects of mothers’ use of mediation to help children (5 to 8 years) resolve disputes. Families in which mothers were trained to use mediation were compared with control families on intervention strategies at home and discussion of a recurring conflict in the laboratory. With training, mothers could use mediation strategies, and these strategies were favored by both mothers and children. Children responded appropriately to mediation (reasoning, discussing emotions, and understanding motivations more often than in control families). Mediation empowered children, particularly younger siblings, to solve conflict issues. Although questions of the long-term implications of mediation remain, this study suggests that mediation may be a powerful parenting tool, promoting social understanding and productive conflict resolution.