The article examines the institute of mediation in foreign countries and in Ukraine. The judicial system of each state plays an important role in regulating public relations. The efficiency of the judicial system is characterized by the ability to protect the rights and freedoms of man and citizen in accordance with the law. Today in Ukraine there are problems with the effectiveness of dispute resolution in court. The most common international method of alternative dispute resolution is the institution of mediation. The effectiveness of mediation is proven in practice in those countries where it is implemented. Mediation is the resolution of disputes involving an independent third party, the mediator. The institution of mediation is a positive phenomenon and its consolidation at the legislative level in Ukraine will reduce the duration of civil, commercial, family and labor cases, reduce the cost of litigation from the state budget, significantly reduce the workload of judges. In Ukraine, the institute of mediation is at the stage of formation and establishment, as, despite the prevalence of the institute in the legislation of foreign countries, for the legal system in Ukraine it is a new, little-studied institution. The article analyzes the world experience of European countries in the use of mediation and the provisions of the legislation governing its implementation, taking into account the peculiarities of existing legal systems. A comparative analysis of foreign legislation and the draft Law of Ukraine "On Mediation" was also conducted. The analysis shows that the bill in Ukraine needs to be finalized, so proposed amendments to the draft Law of Ukraine "On Mediation", namely: 1) to determine the places of mediators in the system of state bodies: to create an autonomous body to exercise a controlling function over the activities of intermediaries or to give the Ministry of Justice of Ukraine appropriate powers; 2) regulate the procedure for referring parties to mediation; 3) to enshrine a rule that would prohibit judges from being mediators; 4) as a result of completion of basic training in the field of mediation, to provide in the Law of Ukraine, the obligation to pass the qualifying examination of a mediator.