With the rapid globalization of trade, international commercial arbitration has become the primary method for resolving cross-border business disputes. Among its defining features, confidentiality is especially critical as it allows proceedings to be conducted without exposing sensitive commercial information. This includes private access to hearings, submissions, arbitral awards, and other procedural components. However, despite its advantages, the confidentiality of arbitration faces significant challenges, including divergent legal interpretations, enforcement inconsistencies, and rising demands for transparency. This paper analyzes the functional role and legal frameworks governing confidentiality in international commercial arbitration. It further explores limitations and recent challenges, such as judicial intervention, technological risks, and the involvement of third parties. Ultimately, it offers a balanced perspective and reform suggestions to reconcile the need for confidentiality with modern calls for increased openness and accountability.