Abstract: The article is devoted to judicial reconcilation as a new instutition of judicial law in Russia. Makarenko analyzes this procedure in comparison to mediation procedure widely practiced in Russia. The researcher examines functions of the court and parties participating in this procedure and describes peculiarities of the judicial reconcilation versus mediation procedure based on the use of formal law and comparative law methods. As a result of the research, Makarenko comes to the conclusion that the use of judicial reconcilation will allow Russia's legislation system to resolve disputes more effectively because this procedure allows to overcome all the drawbacks of the mediation procedure that has not been widely used in arbitration or civil practice. Mararenko also proves that all other alternative dispute resolutions have proved to be inefficient and so has the legislator's attempt to eliminate drawbacks of the dispute resolution procedure by the settlement agreement.