This paper attempts a scholarly contribution to international debate on the diplomatic impasse over Jerusalem in the Israeli-Palestinian conflict. The Israel-Palestinian conflict has been one of the most intractable conflicts in the last two centuries that had defied all diplomatic entreaties. This paper chronicles in perspectives, the historical, anthropological, ethno-religious and diplomatic roots of the conflict; highlights the past and present proposed frameworks recommended for resolving the conflict, as well as the current two-state solution advanced and sanctioned by the United Nations. The paper submits that the internationally proposed “two-state solution” (first proposed under S/RES/1397 of 7 October 2000) which envisaged the creation of an Arab and a Jewish states side by side remains a diplomatic utopia and in alternative, recommends a symmetrical federal union, the potential Federal Union of Israel and Palestine with Jerusalem as its neutral Federal Capital Territory (FCT) remains the most viable solution to the conflict. A federal union that will grant through a national legislation, rights of equal access to all religious faith, ethno-nationalist entities and the people that make up the citizenry of the new state. As a post-conflict measure and peace consolidation initiative, the United Nations should champion a holistic-regional campaign in the Middle East against religious exclusivism through inter-faith dialogues. To this end, all faith-based organizations, humanitarian organization, the media, NGOs, INGO, regional organizations and stake holders should be co-opted into the campaign to “save next generation from the carnage of religious exclusivism”. The paper submits that on Israel-Palestine, there is no religious solution, for religion remains one of the central dilemmas in the conflict, rather, there is a viable political solution (a federal solution) which will reconcile the political, ethno-religious and territorial roots of the conflict.