This study examines the ongoing conflict on Cyprus between Greek and Turkish ethnic groups in the context of accumulated memories and historical injuries which each has experienced at the hands of the other. This is a critique of the traditional approaches to the Cyprus conflict that have explored the conflict from a legal perspective or have focused on international relations and power politics. Devoting more attention to the internal dynamics of the problem, this analysis specifically emphasizes the issue of relational problems between the two Cypriot communities as the principal source of the conflict, based on unresolved traumas in the Greco-Turkish history, both on the island and in general, which are deeply embedded in group identities. It suggests that a more durable settlement between the Greeks and Turks of Cyprus might not be achieved through “logical”, conventional approaches alone. Their relationship should be examined through a “psychological lens”. The study also discusses certain measures and scenarios to find ways to help Greek and Turkish peoples overcome the psychological barriers.