The purpose of the this study is to explain traditional rural land holding conflict resolutionrnin Sululta woreda with prominence of jaarsummaa customary institution.This studyrnintensioned to investigate the types of the rural land conflicts, exploring the importance ofrntraditional rural land conflict resolution for livelihoods and local economic development,rnidentify factors affecting householdsâ€™ traditional/local rural land holding conflict resolutionrn(arbitration) in the study area and examine the gap in formal rural land administration withrnregard to solving rural land conflicts in the area. Data for the study was gathered from bothrnprimary and secondary sources. The interviews and case studies were conducted with 76rnrespondents;accomplished through qualitative methods of data collection and analysis,rnsuch as household interview, key informant interview and case studies. The data obtainedrnfrom both primary and secondary sources were organized thematically and analyzedrnqualitatively. The findings of this study disclose the existence of traditional rural land holdingrnconflicts and Jaarsummaa practices among the study community. Jaarsummaa as traditionalrninstitution of land conflict resolution has vital role in that it is saves time and resource for thernlivelihoods of the community. It is also confirmed that rural land conflicts occurred fromrndifferent sources, among the communities of Sululta woreda. The existence of rural landrnconflict of any level leads to disputing from individuals to social structure, so that itsrnresolution is also the concern of the existing traditional system. Therefore, the traditionalrnrural land holding conflict resolution mechanism with the up right of Jaarsummaa customaryrnneeds to be regulated and well acknowledged in the land laws to have binding influence atrnthe level of joint clear-cutting of the society in terms of ensuring social harmony and keep thernunity of the next generation.