Dialogue is a preemptive and preventive tool for strategic peacebuilding. It is a process to craft informal, safe, and confidential space to engage stakeholders in a genuine interaction to strengthen their trust and understanding for improved relationship. Trust building is a crucial component aimed at strengthening relationships, creating mutual understanding, and identifying possible avenues for cooperation across divides. It involves a process of interaction though which stakeholders listen to each other deeply enough to bring shift in their thinking. The DFAT-TAF Strategic Partnership to Support Sub-National Governance in Nepal program facilitates dialogue and strategic peacebuilding effort on emerging issues relating to sub-national governance, securing local and provincial governments’ interests, needs, and addressing constraints under the new federal structure to facilitate the process of federalization.