This study aims to analyse the effectiveness of the role of alternative dispute resolution (ADR) as an out-of-court dispute resolution solution, identify obstacles in its implementation, and assess the alignment between normative regulations and their practical application within the Indonesian legal system. This study's method is a normative legal study with a statutory approach, a conceptual approach, and a case approach. Data were obtained through a literature study of primary, secondary, and tertiary legal materials, and then analysed qualitatively prescriptively. The novelty of this research is focused on the development of ADR studies that not only discuss conventional mediation but also integrate the concept of online dispute resolution (ODR) as a form of ADR digitalisation, linked to the principles of restorative justice and its relevance in resolving customary land disputes in the region. The results of the study show that ADR has higher effectiveness compared to litigation in terms of time efficiency, cost, flexibility, and the ability to produce win-win solutions. However, the implementation of ADR still faces obstacles such as the low legal awareness of the community, the limited number of professional mediators and arbitrators, and the suboptimal execution of the agreement outcomes. The conclusion of this research is that ADR is an effective, fast, inexpensive, and substantively just dispute resolution mechanism. However, to optimise its role in the Indonesian legal system, it is necessary to strengthen regulations, improve the quality of human resources, and develop institutions and digitalisation through ODR so that access to justice can be broader and more responsive to the needs of society.