Asia –Pacific region is galloping toward security Dilemma formation considering the high volume of arm import, high rocketing military expenditure and modernization of military and maritime forces in the regional countries. Economic and military developments intertwined with strategic competitionin the Asia – Pacific region will lead in to destabilization of the region in near future. To cope with threats and destabilization, regional countries go after augmentation of their security through formation of coalition or upgrading their military power, what the realists remind it as security Dilemma. The whole developments currently are taking place in the region. Based on the facts, the article is seeking to consider whether the increase in the military expenditure and the augmentation of arms import in the region combined with territorial disputes, lack of definite mechanism for dispute settlement and lack of security integrity among the regional states, will have the potentials of formation of security Dilemma and conflict, taking in to account the presence of crucial economic and military powers like US, China and Japan in the region?