Neutrality, a foundational principle in humanitarian efforts and peace mediation, encounters significant practical challenges in the modern landscape of armed conflicts, particularly in the intermediary role of humanitarian organizations. This study examines the role of the International Committee of the Red Cross (ICRC) as a neutral intermediary in Yemen, focusing on the release and repatriation of detainees during the 2016–20 peace efforts. Drawing on the ICRC's experience, the analysis highlights the evolving understanding of neutrality from a rigid concept to a more flexible, context-sensitive approach. The findings emphasize the importance of neutrality in fostering trust and facilitating dialogue while acknowledging the operational complexities and strategic considerations involved. This study provides insights into enhancing the contributions of neutral intermediaries to sustainable peace processes.