This paper aims to analyze the role of space and place in the liminal peace and conflict in the UN-controlled buffer zone in Cyprus. The buffer zone is not simply a neutral space separating the Greek and Turkish Cypriot communities on the island but also has become a meeting place for peacebuilding activities involving both local and international actors. Creation and maintenance of a ‘bi-communal’ space is also supported by international donors with the aim of helping towards Cyprus’ reunification. Particularly in the capital Nicosia, some of the buffer zone’s abandoned buildings are restored and made available for meetings of associations involving people from both sides. The liminal characteristic of the space, however, remains largely intact, as barbed wires, military checkpoints and peace insignia (e.g. graffiti) continue to exist together. Through ethnographic research, I seek to assess how the creation of ‘bi-communal’ places across the buffer zone leads to an aggravated sense of liminality, caught between peace and conflict. The research ultimately questions whether such externally driven creation of liminal peacebuilding space is conducive towards a transformation of the Cypriot conflict into one of partnership and peaceful coexistence.