The study by way of analytical method examines Principled/Collaborative Negotiation Principles and Practice with the objective of applying the same in resolving the dispute of State demand for State Police between States and Federal governments of Nigeria, pronounced by the problem of insecurity of lives and properties. These principles and practices in resolving disputes are distilled and applied in the context of the States and Federal government of Nigeria as parties to the dispute of State demand for State Police. By applying these principles and practices to resolving the dispute between the parties, a good platform is created for the parties' interests, fears and challenges to be brought to bear whereby both parties gravitate towards the same direction to resolving the dispute in order to solve the problem of insecurity of lives and properties.