The Horn of Africa is the most militarised and conflict-ridden region on the African continent, with armed conflicts raging frequently within and between states. In 1991, Somaliland emerged as an autonomous entity in this turbulent region after unilaterally declaring its independence from the rest of Somalia. Over the past eighteen years Somaliland has managed to display an enviable measure of peace and stability. Through successive clan conferences, Somaliland established relatively viable institutions which paved the path for reconstruction of an entity mainly employing local resources. Somaliland has thus been depicted as 'an oasis of stability in an otherwise chaotic Somali regional environment.' The accomplishments of Somaliland, however, have been overshadowed by the lack of international recognition of its statehood and also its territorial dispute with neighbouring Puntland. The overall objective of this paper is to provide a detailed account and analysis of the political development of Somaliland and its conflict with Puntland.