The article explores the dynamics of the Georgian and South Ossetian conflict which has been violent over the last twenty years. It reached a critical peak again in 2008 resulting in new security developments and post-conflict situation which drifts away from reconciliation between the communities. The research explains and identifies the timelines and stages of the Georgian-South Ossetian conflict as well as the potential of violence, specifically placing a heavy emphasis on the case of the Akhalgori district, which had been under Georgian control until August 2008. Furthermore, it employs community relations theory and offers forward-looking solutions which should lead towards reconciliation. The article concludes that reconciliation itself is a very complicated concept to be successfully applied in practice; therefore community relations theory and its approach towards gradual reconciliation between the Georgian and South Ossetian communities seems to be the most reliable option for resolution of the conflict, which should incorporate the Orthodox Church, mutual cultural and anti-intimidation works along with transparent and controllable security actors.