This paper, Urban Conflicts and Institutional Mediation: Public Administration, Roma Settlements, and Normative Polarization Dynamics, offers a sociological investigation into the mechanisms by which public institutions mediate ethnic conflicts, focusing on Roma settlements in Italian urban areas. It explores the relationship between public administration and the normative dimensions of conflict, addressing the processes that exacerbate or mitigate polarization. The central question driving this study is: How do institutional mediation strategies influence the dynamics of normative polarization in conflicts surrounding Roma settlements, and what are their implications for social cohesion and governance? The analysis is rooted in classical and contemporary sociological theories, drawing on Georg Simmel’s conflict theory, Albert Hirschman’s insights into normative conflict, and Ralph Turner’s emergent norm theory. The paper conceptualizes conflict as both a process of social fragmentation and a potential generator of social norms and institutional innovations. Employing a comparative approach, the research is based on case studies of ten Italian cities, including Milan, Rome, and Venice. The study integrates qualitative data from institutional records, ethnographic fieldwork, and interviews with stakeholders, enabling an examination of policy instruments and their outcomes in diverse urban settings. Content Overview: Polarization as Cause and Effect: The paper examines two dominant approaches in the literature: one that views polarization as a cause of ethnic conflict and another that considers it a result of conflict dynamics. The latter framework is applied to analyze how conflicts are shaped by institutional mediation. Public Policy and Roma Settlements: An in-depth analysis of policies targeting Roma communities highlights ten recurrent features, such as spatial segregation, the cyclic use of forced evacuations, and the lack of recognition of Roma agency. These policies are critiqued for their demagogic underpinnings and their contribution to public stigmatization. Innovative Mediation Practices: Counterexamples from smaller cities, including Trento and Mantua, demonstrate alternative approaches to conflict resolution. These include participatory planning, integrated housing policies, and the acknowledgment of Roma voices in policymaking, offering insights into non-segregative and sustainable solutions. Institutional Mediation and Normative Production: The study identifies the role of institutional mediation in fostering compromise by introducing shared normative frameworks. It argues that effective mediation transforms conflicts into opportunities for generating flexible norms and shared resources, moving beyond coercive or exclusionary practices. The research underscores the variability of conflict outcomes based on institutional approaches. It posits that while some policies exacerbate polarization, others demonstrate the potential for inclusive governance and social integration through innovative mediation practices.