Mowlam's main task was to seek a peaceful solution to the longstanding Troubles - a process that had begun under the previous government. Nearly 80 years ago, Ireland was divided and this resulted in a conflict between those who wanted the North to remain part of the United Kingdom and those who wanted the North to join with the South as part of a united Ireland. In the last thirty years, thousands of lives have been lost as a result of action by armed radicals from both sides. Mowlam immediately took up the peace process with her own distinct style. When in January 1998 it seemed that the negotiations had got stuck, Mowlam took a high-risk approach and went into the Maze Prison in Belfast to talk face to face with convicted terrorists to try to resolve the situation. As a result, the Loyalists who had lost faith in the peace process decided to drop their opposition to the Northern Ireland talks. Negotiations continued and, in April 1998, all parties signed the Good Friday Agreement.

The Agreement included the setting up of a Northern Ireland Assembly with the power to legislate and take over the running of government departments. Before final agreement was reached, referendums were held North and South of the border in May 1998. Over 70% of the voters backed the Agreement and Mowlam spoke out on what this might mean for the future of Northern Ireland.

 "If from here we can build a future that gives everybody a chance - and particularly the children of the next generation - a chance to live without violence, a chance to have a better future, then this is a day for everybody .. across the island, across Britain, it's a good day for us all."