This study highlights that Pakistan and India-the nuclear armed rivals-after decades of hostile postures have started a ‘peace process’ since 2004 which involves a number of CBMs, of which the measures related to enhanced trade and travel assume a center stage and are bringing the two countries at a stage where it is becoming inevitable for them to find ways to resolve their disputes, and avoid armed confrontation for mutual benefit. International order, it is found in this study, also pushes towards the same approach. The study especially looks into Cross Line of Control (LoC) trade CBM between two divided parts of Kashmir started in October 2008, as a major and latest step of the peace process and its role in transforming the dynamics of Kashmir conflict. While the exact transformational value of cross-LoC trade is yet to be studied in detail, the progress registered so far indicates that this trading, despite the procedural issues involved in it, is bringing the divided families together, resulting in economic benefits for the conflict-riddled Kashmiri society - and while there may be opinion against it-the trade is created a bottom up pressure for sustained peace and tranquilit