This article introduces 'blended conflict' as a novel approach for the understanding of the multi-levelled interconnectedness of factors that lead to, and sustain, complex conflicts. It assesses the impact of the European Union's efforts to manage Kosovo's blended conflict, focusing on the EU-facilitated dialogue and the establishment of the Association/Community of Serb Majority Municipalities. It shows that the EU's tactic of constructive ambiguity has produced short-term results at the state level, but it endangers stability in the long term by exacerbating the situation on the ground. Empirically the study draws on data from repeated fieldtrips and semistructured interviews with EU personnel, governmental, nongovernmental and international actors in Kosovo and Serbia. This article contributes theoretically and empirically to the wider conflict management literature.