The Spratly Islands dispute is an ongoing territorial dispute between China, Taiwan, Malaysia, the Philippines, Vietnam and Brunei, concerning territorial sovereignty over the Spratly Islands. This conflicting territorial claim between these coastal parties is raising tensions in Asia, so the settlement of this dispute is of key importance for a peaceful atmosphere in the area. The dispute is also significant in respect of being an international geo-strategic, economic, political and legal matter. After a 1988 armed conflict between Vietnamese and Chinese forces, the claimants have looked for approaches to solve the conflict peacefully through different informal endeavors, but due to the complexity of the dispute there are a number of barriers to reaching a permanent settlement. This study puts forward some potential approaches for resolving the dispute, considering its complex nature, by evaluating the six parties’ competing claims and analyzing the legal soundness of their claims.