The South China Sea(SCS), a semi-closed sea, is one of the most strategically significant regions in the world, and contains some of the world's busiest sea lanes, which links the Northeast Asia and western Pacific with Indian Ocean and the Middle East. Apart from being the vital sea lane, the SCS is rich in fish, oil, and natural gas resources. Thereafter, all parties involved in the contention have various interest in the SCS; quest for energy resources, fishing and other maritime interests, and overall national security. Six parties(China, Taiwan, Vietnam, the Philippines, Malaysia, and Brunei) are involved in disputes over jurisdiction of the territory and maritime space. China is understandably the most important player in the South China Sea dispute, and never conceals its ambition to dominate the SCS. China's naval power and ambitions to dominate the region has seriously challenged ASEAN. Throughout the 1990s, ASEAN States have made a great effort to normalize their relations with China, and China has changed its previous adamant insistence on bilateral talks to now gradually accepting multilateralism as an approach. In result, in November 2002, China and ASEAN signed the Declaration on the Conduct of Parties in the South China Sea. Nevertheless, Tensions are on the rise in SCS and more complicated than expected. As the most powerful actor among the claimants, China's behavior sets the tone of the dispute, and since 2007-2008 its behavior has become more assertive. In addition, U.S. reassert its “national interests” in freedom of navigation and the maritime disputes roiling relations between China and its neighbors. It is possible that in a near future, the claimants to the SCS would not be able to resolve sovereignty, a complicated and sensitive problem considered scared and very important. However, we can expect a moderate solution from the parties involved on joint development and management in these disputed areas.