In this thesis we will discuss about dispute settlement through WTO mechanism. The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade. It tries to provide market access to countries for their products and services and promotes friendly investment policies by eliminating trade distortions between countries, trimming down tariff and non-tariff barriers, removing quotas and abolishing subsidies in a phased manner. The WTO's Dispute Settlement Mechanism (DSM) has been hailed as a fundamental aspect of the Multilateral Trading System for member countries. The General Agreement on Tariffs and Trade (GATT), concluded in 1947 and its successor the World Trade Organization (WTO) that subsumed it in 1995, embody rules governing the global trading system as specified in various agreements that their members have entered into overtime. Naturally, both had a dispute settlement mechanism (DSM). It was a primarily political one the GATT and was transformed into a largely legalistic one in the multilateral agreement that established the WTO. This paper reviews the historical background, how is different from GATT (DSM), its analyses the dispute settlement mechanism, remedies available to parties, appeal procedure, compliance, and solution of its betterment and dispute settlement and developing countries.