Cyprus conflict is one of the protracted social conflicts. Since 1950s, despite all the peaceful efforts no just and lasting peace between the two Cypriot communities to live in peace and security under a Federal Republic has been attained. Federal solution is one way of a structural change, which resolve nationalist or ethnic conflicts. However, conflict resolution practitioners emphasize the necessity of the development of preconditions for effective resolutions of the conflicts. Only then it is possible to create structural changes conducive to a stable peace. It is argued in this article that, in Cyprus, neither the psychological and social conditions nor the necessary mechanisms to enable a federal association to work successfully exist.