Abstract: This article is dedicated to the question of the essence of a settlement within the framework of judicial conciliation procedure. The issue is being explored from comparative perspective, where the essence of a settlement within the framework of judicial conciliation procedure is compared to the essence of a similar institution in terms of mediation procedure. The work examines legal precedent and doctrinal opinions of experts on the issues of legal essence of judicial conciliation as ones established by judicial and non-judicial procedure of conciliation. The author highlights the key aspect of the procedure of judicial conciliation in relation to reaching a settlement, including the rights and obligations of the parties to the process from one side, and the court on the other. The conclusion is made that the legal nature of settlement represents a mixture, comprised of elements of material (civil law), as well as procedural (civil procedure) law. A claim is made that within the framework of the judicial conciliation procedure, the legal nature of a settlement contains more procedural law elements than that of mediation procedure, which is explained by the broader authority of the court and correlating reduced authority of the parties than in terms of a mediation procedure.