The article presents an overview of the resolution process of the Nagorno Karabakh conflict between Armenia and Azerbaijan, which has blighted the Caucasus region for almost twenty years. The author argues that a central mechanism for conflict resolution is lacking; the OSCE Minsk Group is meant to serve this purpose, but has so far been unable to secure a peace agreement between the parties. Further, the author emphasizes the fact that Karabakh is an opportunity for the coexistence of the Azerbaijani and Armenian communities, and that there are many cases internationally where similar conflicts have given rise to autonomous regions following long term negotiations. Finally, the author demonstrates the enormous economic benefits for the Caucasus region as a whole if the conflict is resolved under the terms the paper proposes.