The purpose of this study was to investigate the nature and methods of managingrninterpersonal conflicts at the neighborhood level among the two kebeles of Shewarobit town.rnThe subjects were 240 household heads of Shewa1'Obit town who completed questionnaires.rnAnd 16 people who participated in traditional conflict resolution process were selected for thernfocus group discussion'. The discussion was conducted by dividing them in to two groups.rnFurthermore 3 key informants were interviewed. The subjects were selected by using simplernrandom sampling and purposive sampling techniques.rnThis study outlines the inevitability of conflict and the existence of various conflict resolutionrnmechanisms. Among the various conflict resolution mechanisms, the traditional way ofrnresolving neighbors' conflict is the commonly/frequently used method and effective methodrnthan the modern judicial system. According to this study, although frequent communicationrnbetween the two parties can reduce the tension/level of conflict, solving conflicts throughrndiscussion/communication of the two parties is the least commonly employed/used method ofrnall. The findings also indicted that conflict due children's affairs, land borders and falsifiedrninformation are the main causes of neighbors' conflicts mentioned by household heads, focusrngroup discussants and key informants. Neighbors' conflicts have many and diversifiedrnpsychological, social and economical effects not only on the two conflicting parties but alsornon their family members.rnThe study reports that in traditional method, there is a marked absence or inadequacy ofrnenforcement mechanisms to effect what the elders and other traditional courts have ruled.rnThe customary courts rely on goodwill of the society to adhere to its rulings. In terms ofrngender consideration there is a serious gender and age imbalance as women and youth arernlargely excluded from important community decision making processes. Women and childrenrnare there to be seen and not heard despite of the fact that they play a critical role inrnprecipitating conflicts.rnThe study proposes that there should be increased collaboration and networking between therngovernment and traditional institutions' of governance. In particular the government shouldrnrecognize and aid customary courts enforce their rulings. The elders should be trained onrnmodern methods of arbitration and at minimum and traditional mechanisms of conflictrnmanagement should be more sensitive to the universally accepted principles of human rights.rnGender and age mainstreaming in conflict resolution should be prioritized in all traditionalrncourts and in decision making processes. Women and children voices should be heard andrnseen to the fundamentally alter the pace and direction of community governance systems.