This study aimed to investigate urban land use conflict on peri- urban communities. This study rnhas employed descriptive and explanatory research design; the study applied both quantitative rnand qualitative approaches. The study took 180 total sample sizes from the 900 total rnpopulations in the study area through stratified sampling and purposive sampling techniques. rnData were collected using closed and open-ended questionnaires, semi-structured interviews, rnand focus group discussions while secondary data was from documented sources. The rnquantitative data were analyzed by employing the computer software known as IBM SPSS rnversion 20. The descriptive statistical methods such as frequency and percentage used. The data rnobtained through interview and focus group discussion were analyzed qualitatively in rnexplanation forms. The result of the study indicated that many farmers were displaced without rnfair compensation, large farmlands were also taken for various infrastructures, conflict was rntakes place between the town municipal and peri-urban communities and the farmers are sold rntheir land by fear of the expanstion of the town and they were socially, economically, politicallyrnand environmentally challenged. There were also dislocation and conflict between the rnmunicipality and peri-urban farmers. This led them to migration, unemployment, poverty and rnas well, as conflict with the municipality. Therefore, municipality office should minimize this rndislocation and conflict. Fair, equitable, and legal justice compensation have been realized byrnmunicipals through build its capital capacity to compensate the displaced farmers. The rngovernment should make profound discussion with peri-urban communities and ensure good rngovernance, urban land management policy, discuss with them through public conference in the rnarea to alleviate their problems. The government should stopped illegal setliments and selling rnof farmland in peri-urban area by farmers and it is better to give awareness for non-displaced rnfarmers before displaced and after displaced to make them having well image for urban rnexpanstion and for psychological make up