This study is focused on the Katarungang Pambarangay that is implemented in Brgy. Salumague, Paniqui, Tarlac. It seeks to examine the role of KP as a peace building mechanism, investigate how they resolve dispute at the grassroots level to foster social harmony, and determine the challenges encountered in the implementation of KP. The methodology used was a qualitative research design. A total of five (5) participants were chosen based on their years of experienced in resolving disputes and a semi-structured interview was utilized. The findings of the study show that Katarungang Pambarangay is an alternative community-based dispute mechanism, convenient and accessible justice to the community of Brgy. Salumague fostering community peace despite of the challenges faced by the implementors.