This study critically examined the role of the Inter-Religious Council of Amhara (IRCA) in peacebuilding during the ongoing armed conflict. The Amhara National Regional State has recently faced protracted political violence, characterized by armed confrontations, social fragmentation, and severe humanitarian crises, necessitating credible localized peace initiatives. While faith-based organizations are theoretically positioned as "insider mediators" with unique moral authority, a significant research gap exists regarding how regional inter-religious councils operate during active, ongoing conflict rather than in post-conflict or stable settings. The researcher have employed a qualitative research approach and single case study design, the researcher gathered data through 30 key informant interviews, five focus group discussions, and extensive document analysis. A total sample of 60 participants was selected using purposive and snowball sampling techniques to ensure Triangulation or a diverse representation of religious leaders, government officials, community elder and grass root community members across the region. Findings revealed that while IRCA has a strong moral foundations and mandate for promoting peacebuilding and social cohesion, its practical involvement in the ongoing conflict is very limited and indirect, focusing on peace conferences, peace education and public messaging rather than direct mediation or structured dialogue between conflicting parties. Major challenges hindering effectiveness included the politicization of religious leaders, government interference, security risks in contested areas, and chronic financial constraints. Conversely, the study identified significant opportunities for IRCA in the high level of societal religiosity and the deep-seated moral legitimacy and religious values, existence of a legally protected council. The research found that there is a big gap between the IRCA official goals and what it actually does in real life. While the organization has a very clear plan and good rules on paper, it has not had much of a real effect on fighting the ongoing conflict in ANRS. Practical recommendations IRCA should prioritize institutional neutrality and organizational capacity building while creating inclusive platforms for women and youth to bridge the existing gap between the council's normative mandate and its operational reality. IRCA and its member institutions should use the media to regularly strengthen the voice of faith for peace and reconciliation. and systematically integrate indigenous social institutions like Iddir and Iqub to foster culturally grounded, grassroots peace building.