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The regime of innocent passage is a well-established body of customary international law. However, when there is a dispute over sovereign entitlement to a territorial sea or its outer limit, the applicability and legal effect of the regime are brought into question. This article considers the applicability of the regime of innocent passage and its legal effect in disputed waters by critically examining the relevant jurisprudence of international courts and tribunals that have dealt with territorial and maritime disputes. The efficacy of the findings from this analysis will then be evaluated from a legal policy perspective in the interest of the maintenance of international peace and security.