Territorial issues provide potent challenges to international peace, engaging both state and non-state actors in violent conflict. Arbitration stands out as an effective legal alternative for settlement, available in both inter-state and intra-state settings. Uniquely, arbitration can leverage both political and legal considerations in producing a binding settlement, that is, if a tribunal is authorised to complement judicial assessments with equitable considerations. This study, for the first time, provides a comprehensive study of the role of equity in the settlement of territorial disputes, particularly through international arbitration, and develops three in-depth case studies (Eritrea-Ethiopia, Rann of Kutch, and Brčko). It finds that equity emerges as an important consideration for disputants and arbiters across the initial decisions to opt for arbitration, during the arbitral process, and in response to implementation. If employed, and subject to context, equity-based decision-making can bridge considerations of legal precision and the imperatives of peace and stability.