Court mediation is now playing a crucial role in the Chinese legal system. Based on two case studies in Yunnan Province, this paper examines how court mediation works in Southwest China. It finds that court mediation can expand the capacity of the court concerning case acceptance, and is capable of fixing multicentre disputes and complicated social problems. However, the paper also points out that when encountering some ill-suited cases, justice may be undermined and the judge’s role may be confused. Therefore, it is necessary to pass some law to exclude the ill-suited cases from the mediation track when promoting court mediation in Southwest China.