This article examines the Georgian-Ossetian conflict by considering recent developments and comes up with a formula for the resolution of the conflict. According to the article, a new confederal order that takes its shape at the constitutional level would contribute to the cessation of the rooted hostilities and the elimination of the institutionalised doubts between the two communities. South Ossetia would benefit from the confederal order in the short run; however, the order would, in the long run, create a public area where the two communities would coexist in a peaceful manner. Collaborationist and integrationist steps taken by the Georgian and Ossetian authorities after the construction of the confederal order would gradually cease the hostilities and eliminate the doubts, ultimately leading to the transformation of regional or national loyalties into confederal allegiances. These allegiances would establish an environment of mutual trust encouraging the communities to turn their confederal union into a federation or unitary state. Such unionist and holistic transformation processes have been completed by historical confederations. Furthermore, present confederal organisations are also carrying out such processes. The article taking into account various matters, e.g. the current Georgian and Ossetian standpoints as well as the present military, financial and political capabilities of the Georgian state, recognises its confederal formula as a worth-examining alternative.