As diversity is the strength for economic growth quality domestic institutions and good governance are some of the essential factors to achieve sustainable growth and maintain social stability and harmony. Therefore, necessary social, economic, political and institutional dynamics contribute to higher growth prospects and mitigate conflict in a multi-cultural society. Since the 1987 military coups some of the issues that have confronted the people of Fiji, and others, co-integrate with ethnicity, political instability, conflict and governance. This article links these issues and evaluates the characteristics and factors associated with the dimensions of conflict. In particular, the study highlights the nature and impact of conflict on the civil society and growth. With several crises and instabilities in Fiji, the outcomes of strategic ethnic and distributive conflicts have created new opportunities in inequality in power and resources. The absence of land rights itself is central to the problem where the livelihood of communities are threatened and conflict arises with insecurity. What role can foreign aid play to achieve stability and avoid ethnic conflict for growth? The paper highlights these global issues and a need for a system-wide approach to address conflict and peace. The paper further discusses the use of aid for conflict settlement, growth and development, and the policy implications for Fiji.