This discussion of potential uses of mediation as a management and communication tool focuses on the library setting. The nature of conflict is considered, and the concept, basic principles, and applications of mediation as a form of conflict resolution are presented. The four steps in the mediation process are then described: (1) Introduction, (2) Story Telling, (3) Problem Solving, and (4) Agreement. Within the library environment, sources of conflict (between staff members, between an employee and a supervisor, between a staff member and a patron, and between the library and its parent organization) and applications of mediation are discussed. Organizations offering formal training in mediation are noted and several areas that should be covered by the training are suggested. The paper concludes by outlining reasons that mediation can be an effective tool in conflict situations. (7 references) (MES)