This study examines alternative dispute resolution (ADR) methods—such as arbitration, mediation, and negotiation—for resolving e-commerce disputes in Bahrain’s expanding digital economy. While e-commerce enhances accessibility and efficiency, it also introduces legal challenges in contracts, delivery, and payments. Using a descriptive and comparative approach, the study highlights ADR’s flexibility, confidentiality, and jurisdictional advantages for online transactions. It concludes with recommendations to strengthen Bahraini legislation on electronic contracts and arbitration, aligning it with international standards to support a thriving e-commerce environment.