The Kashmir dispute between India and Pakistan remains a complex, volatile and intractable issue which has plagued both countries since independence in 1947 and it is still a matter of international interest. In many ways, Kashmir is an ethnic, religious and territorial issue with the potential for strategic and economic gains to India and Pakistan. Both nations have strong legal and moral claims to Kashmir, which has virtually reconciled itself to accepting the status quo and has even practically abandoned its insistence on the right of the Kashmiris to self-determination. Since 1989, a major uprising against Indian rule by the Kashmiri Muslims has changed the face of Kashmir and a gun culture has converted the paradise into a martyrs' graveyard. However, the September 11 2001 incident has changed the shape of world politics and in the new scenario, Pakistan launched a new political initiative on Kashmir to reaffirm its long-standing policy of supporting the right of self-determination for the people of Kashmir. India accused Pakistan of involvement in terrorism, extremism and militancy, but General Pervez Musharraf's proactive policy put India’s hawks on the back foot and projected the Kashmir cause as a popular struggle. Moreover, Kashmir is a major flashpoint in South Asia and it is widely believed that the nuclear dimension in the region has already created a dooms day scenario and that tension needs to be defused through the active role of external forces. Nevertheless, both countries have an opportunity to extricate themselves from the dispute by means of an acceptable solution without any further human and material loss.