ABSTRACT The purpose of this study is to find out how the govenment fails in mediating two conflicted sides in Goa Pindul, which is situated in the village of Bediharjo, Karangmojo district in Gunung Kidul Regency, Yogyakarta. The government fails to find resolutio ns that satisfy both of conflicted sides in Goa Pindul. To find out how the government has failed in mediating the the conflict, first, the researcher will identify the dynamics of the conflict; second, the researcher will find out what kind of actions the government has done to mediate the conflict; and thirdly, the researcher will try to analyse in what way that the government eventually failed in mediating the two conf licted sides in the Goa Pin du ls area dispute. To find out how government has failed to mediate the conflictthe researcher will use the concept of conf lict dynamic sas the reasearchs ap proach. Pre -conflict, confrontation, crisis, effect, and post-conflict will be used in theconceptual approach. The second concept to be used in this study is mediation, as a tool to solve the conflict and finding resolutions. The concept were used to explain mediating action takens by any mediators.The qualititative research method will be also used in the study using interviews and document reviews (either secondary or primer documents related to the conflict). Findings on the field show s that Goa Pind uls d isp ute has been increasin g in inte nsity, especially between the two conf licted sides: Goa Pind uls tour gro up or Pokdarw is (Kelompok Wisata Gua Pindul) and land owners. Both Pokdarwis and land owners claims that Goa Pin dul s tour s belon gs to them. The government then mediating the tw o conflicted sides with no result since the conflict has been escalating without any resolutions. Both Pokdarwis and Land owners has lega l claims to Goa Pindu ls tour area according to each sides, making the govenment unable to choose which one is more entitled in Goa Pindu ls o peratio ns. Pok darwis claims that it s ok f or them to o perate to urs in Goa P ind ul since Goa Pindul is a pub lic space accordin g to the Ind onesia ns Constitution of 19 45 especiallyArticle 33, but land owners also have proof on their claims using certificates for the land. Fur thermore, Pokdarwiss so lu tio n by offering compe nsation s to solve the conflictsisnot enoughaccording to the land owners, also one of the reasons why the government fails to mediate the conflict.The last but not the least important, some people thought that the government have their own motives in mediating the conflict, also one of the reason why the government unable to mediate the two conflicted sides. Regardless of the resons w hy the conflic t unab le to be media ted, the go vernments failin g to med iate the conflict has escalates the conflict intensity making it not only affect both of the s ides that directly related to the conflict but also affect the people who work and depends on Goa Pindu ls operation for the ir live lih ood. Keywords: mediation, Goa P induls tour.