The article explores the implications of conflict between Chechnya and Dagestan. It explains the evolution of the Dagestani-Chechen relations, their confrontation and psycho-cultural dramas; covers its recent developments and offers a path towards resolution. It outlines the key events which created a division, thus impacting on their harmonious cohabitation. The roots of their confrontation derive from historical injustice towards Chechnya as a result of forced deportation, unwillingness to revise the territories or accommodate the needs of the communities living in the disputed territories of Dagestan on the one hand. A series of external actions (such as the movement of Chechen troops into the Dagestani region—including armed raids in Borozdinovka in 2005 and 2008) substantiated anti-Chechen Dagestani sentiment. The article concludes that the Dagestani-Chechen relations need serious revision and intervention from regional authorities in addition to traditional local justice and reconciliation mechanisms. The research was supported by a Marie Curie International Research Staff Exchange Scheme Fellowship within the 7th European Community Framework Programme