After prolonged period of peace and stability, the war-torn Afghanistan fall victim to interstate conflicts that began in 1978. The two phases of conflict in Afghanistan, the first emerged after Soviet Invasion in 1979 and the second after US Invasion in 2001, were dealt separately. Different approaches were adopted and effective measures were taken to transform the conflicts. Peshawar Accord 1992 and Bonn Agreement 2001 were the charters for transformation of Soviet and US transpired conflicts respectively. Although both the conflicts were ultimately transformed into ethnic struggles but their transformation approaches differ widely. Peshawar Accord was advocating a more comprehensive and modern approach based on principles of good governance with primary focus on the Rule of Law. The US approach towards conflict transformation in Afghanistan was through democratic development and political participation. The rule of law was dealt as a by-product of democratization process. The policy of power sharing by different ethnic factions in Afghanistan was adopted to ensure political development. Although the democratization process has been developed and successful power transfer has been witnessed in the previous years, the overall situation of the country has been worsened even further and the overall US policy of power sharing has thus failed to secure stability in Afghanistan.