The paper focuses on the role of the European Union as a mediator between Serbia and Kosovo in the framework of the ‘Belgrade-Pristina dialogue’. It addresses two research questions: 1) How effective has the EU been as a mediator in the Belgrade-Pristina dialogue? 2) What factors influence its effectiveness? Mediator effectiveness is analysed along two dimensions: goal-attainment and conflict settlement. The explanation of mediator effectiveness is structured around four key variables: mediator leverage, mediation strategy, coherence and the conflict context. The empirical analysis concludes that the EU has been partially successful in terms of conflict settlement and in attaining its narrowly defined goal s, and only moderately effective in achieving its long-term goals. The EU’s success in mediating a number of agreements can be explained by its great leverage vis-à-vis the conflict parties, its manipulative mediation strategy as well as external support and the right timing of the mediation initiative.