The unresolved Serbo-Albanian rivalry over Kosovo stands out as a central issue in the modern Balkans, often fueling significant tensions. The two most prominent problems in their bilateral relations revolve around Kosovo’s recognition as an independent state and the fate of the Serbian minority in northern Kosovo. This already complicated situation becomes even more complex when we consider the power politics of the great powers—such as Russia, the EU, and others—in the region. Taking the above into consideration, this paper aims to examine how these international power politics shape, maintain, and even fuel the Serbo-Albanian rivalry, mainly using Max Singer’s and Aaron Wildavsky’s theory about zones of peace and zones of turmoil in the international system. The study seeks to answer the question: “Why are Serbia and Kosovo still entrenched in the zone of turmoil when the rest of the Balkans experience relative peace?” Through the examination of the influence of great power politics and the domestic dynamics of Serbia and Kosovo respectively, this paper aims to elucidate both the structural and agency-related factors contributing to the continuation of the conflict. The conclusion discusses potential windows of opportunity for reconciliation and their limiting factors, contributing overall to the debates on conflict resolution and foreign influence in the Balkan region.