Pakistan’s erstwhile Federally Administered Tribal Areas (FATA) have suffered a lot due to terrorism and extremism after the 9/11 attacks in the United States because these areas were used by local and transnational militant groups as a haven after the U.S. invasion of Afghanistan in 2001. These groups attacked the security forces, the local tribal leaders, and all those who opposed them and killed, many of them to get control over these areas. This resulted in huge physical, economic, social, and psychological damages in the region. To bring the region back on the path of peace and development, Jirgas were held on the local and governmental levels. To explore the role of Jirga, this study used a qualitative method to identify and explain the factors of peace and development. This study also includes primary data where 25 participants, who are/were active and experienced in tribal customary matters, were purposively selected and interviewed through a semi-structured interview guide. Data analysis was performed by using thematic analysis techniques. This study explored that Jirga played an important role in peacebuilding and development in the form of policymaking for FATA; mobilisation for action, restoration, and rehabilitation; resolving local feuds; and the establishment of FATA University in the region. This study recommended that all reforms and efforts must be made under the priorities and needs of the people of former FATA.