This paper looks at third party liability (TPL) in space law from a systematic perspective. It analyses the rules governing compensation for damage to third parties resulting from space activities under the international law of space and under select national liability regimes. While the liability mechanism under the Liability Convention is designed to cover TPL, it remains a less attractive mechanism of recourse for victims, who are more likely to pursue damage actions before national courts, especially in the case of commercial space operations. The paper discusses possible trends for commercial operations in a field where liability disclaimers, cross-waivers of liability and government liability guarantees are the order of the day. It looks to compliance with safety and debris mitigation rules as a measure of damage mitigation, particularly where damage occurs in orbit and fault must be substantiated. Finally, using the example of the Galileo commercial GNSS system, the author examines the complexities of satellite navigation systems that could lead to large- scale third party damage. While there are arguments for consistent international and national levels of damage regulation, the paper recalls that TPL currently remains an issue that turns largely on the availability and nature of insurance coverage.