Existing literature on international business and commercial laws shows us the inherent dilemma between the legal system and nation-state sovereignty. The process of globalization increased the role of non-state actors, regional organizations, Free trade arrangements, etc., creating a huge spec for international arbitration. International commercial laws are becoming a part of the new normal, where the nation-states find a sort of advantage when moving with such laws. On the other hand, national sovereignty, which played a powerful role in the last few decades, seems to be challenged greatly by the new developments in a new globalized world. However, the nation-state and its sovereignty continue to play an influential role in the power relations and trade relations among different nation-states. The paper examines this crucial confrontation of international commercial law and nation-state sovereignty with a special focus on the possibilities of harmonization. The paper also explores the dynamics and challenges of the harmonization process in this context.