She also said there was an "issue in the minds" of the people and it needs to be addressed.
"Mufti (Mohammad Sayeed) used to say bullets and grenades cannot solve issues. Gun has not changed anything. There is no way out other than dialogue," Mehbooba told NDTV.
Referring to the ongoing unrest in the Kashmir Valley, she said everyone should "feel the pain" of the future generation.
"Those who have other ideology should also feel the pain of the younger generation getting affected. What do you want to achieve by this (violence)? What Azadi (freedom), what Pakistan or what India," she said.
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"We brought in security forces and they contained the situation. But there is an issue which is in the minds. It has to be addressed," she added.
The Chief Minister also spoke about destruction of public property during the clashes after the killing of Hizbul Mujahideen commander Bhurhan Wani on July 8 saying it was a setback to development process.
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Calling for introspection, Mehbooba said people have to ponder over how the educational, economic and social structure of Kashmir is being systematically ruined because of the prevailing situation.
"There are instances in the history where various nations and communities including the Palestinians did not allow the education of their children to suffer amid conflicts and wars," she said.
Mehbooba said instead of asking the Kashmiri youth to focus on education, they are being incited to take stones in their hands and attack whosoever comes their way.
"An elderly vendor who moves out of his home in the morning to earn the bread and butter for his starving family is being disgraced by urchins, young girls are being threatened that they will be torched alive alongwith their scooties if they move out of their home, people wearing decent clothes are being intimidated, respectable citizens are being humiliated and unsuspecting travelers are being pillaged in the name of protests," the Chief Minister said.
On Saturday, Omar had warned the Mehbooba Mufti-led Jammu andKashmir government that BJP may use judiciary to scrap Article 370 as the "saffron party has understood that they cannot use legislation to scrap it".
The NC leader had cautioned the issue may snowball into a major controversy in the future.
Hitting out at those raking up the issue of demographic change in Kashmir if Kashmiri Pandits return to the Valley, the chief minister said: "How can they live there. Recently they fled from the Hall transit camp."
She said it is "big challenge for all" to bring Kashmiri Pandits back to the Valley with honour, dignity and security.
"But when we are saying we want to set up additional accommodation for more Kashmiri Pandits... There is opposition," she said.
Mufti said some members of the Assembly and the Council told me that Kashmiri Pandits be rehabilitated in "their places. When our ex-MLAs and our workers are still in hotels and other places under security cover, how can we say like this. That means in the heart of hearts, we do not want them to come back to Kashmir".