The Spratly Islands archipelago is claimed by China, Taiwan, Vietnam, the Philippines, Malaysia and Brunei. The dispute becomes complicated with the increasing assertion of China’s Nine-Dash Line claim over the South China Sea, which involve militarisation of the region. The study seeks to identify the implication of China’s nine-dash line over the Southeast Asia region, the barriers that have prevented for a peaceful settlement and the possible solutions for a peaceful settlement over the Spratly Islands dispute. The methods used to answer the study questions are through interviews and data sources available on the issue. It is found that China’s nine-dash line claim could implicate for an escalation of tension in the region and serve China’s ambition as a regional hegemon. Moreover, the barriers identified are institutional and organizational factors, the claimants’ strategies and tactics, and the external factors and reasons beyond the parties control. The possible solutions for a peaceful settlement include multilateral negotiations, legal resolutions and maritime energy cooperation. Therefore, the study portrays the exploration of China’s nine-dash line claim in the region. Further research could be undertaken to continue assess the everchanging development of the Spratly Islands dispute.