Jerusalem, being one of the intricate issues within the Middle East Peace Process, crystalizes significant tensions and difficulties that are challenging the path towards a peaceful solution to the Israeli-Palestinian conflict. International stakeholders, including the European Union, advocate for Jerusalem as a shared capital for Israel and Palestine, guided by international law and bilateral agreements. However, the effectiveness of the EU's strategy is contingent upon the sincere cooperation and consistent actions of its Member States. This thesis explores the discrepancies in Member States' actions in Jerusalem, which undermine the EU's objectives and the peace process. It emphasizes the critical need for Member States to adhere to their legal obligations to ensure a coherent EU approach in supporting the peace process. It proposes solutions to align the EU's and its Member States' actions, aiming for a harmonized and effective approach towards a peaceful resolution for Jerusalem as a capital for two states.