In the past few years, the Nile River Basin has been subject to a rapid increase in the implementation of new water projects as the Nile riparian States seek to improve their respective national economies, promote development and alleviate poverty. Indeed, Ethiopia has recently started the construction of the Grand Ethiopian Renaissance Dam on the Blue Nile. However, the population of the Basin is threatened by the impacts resulting from the future dam and reservoir. Furthermore, the Basin population is characterized by high ethnic diversity. Therefore, the influence of the Grand Ethiopian Renaissance Dam might induce potential ethnic conflicts among the different groups living in the Nile River Basin. The following research proposes a framework for ethnic conflicts settlement as a means to deal with the potential disputes. The framework is composed of a series of recommendations that need to be implemented as to avoid conflicts in the Basin.