This study focuses on the dynamics of inter communal conflict between Argoba and Karrayu communities in the border areas of Fentale and Minjar Shenkora Wereda. Methodologically, the researcher employed qualitative research approach with case study research design. The researcher relied on both primary and secondary sources of data. The tools used to collect data were semi structured and in-depth interview, FGD, personal observation and document analysis. Purposive sampling, a type of non-probability sampling was also used to select the participants for in-depth and as well as FGD. The analysis of qualitative data was made using thematic data analysis. The findings of this study reveal that, the pastoralists of Karrayu and agro pastoralist of Argoba have had a long history of relationship marked by friendly coexistence and occasional conflict. In the earlier times, Argoba- Karrayu conflict was caused by cultural practices and competition over scarce resource and cattle raiding. Nevertheless, after 1991 conflicts have intensified and changed due to a range of factors including environmental degradation and changes in the federal structure of Ethiopia. The actors involved in the conflict were the local people in general and the political elite who play a role by aggravating and encouraging the people. Indeed, the study revealed and analyses that the consequences and impacts of Argoba-Karrayu conflict like human and livestock loss, destruction of infrastructure, degradation of natural resource and internal displacement is immense. To manage the conflict and build peace in the study area formal and indigenous mechanisms of conflict management and peace building were undertaken. However, the attempts failed to address the root causes of the conflict and build lasting peace. Thus, as the finding of this study indicated, in the study area even in the state of emergency there are minor inter-personal conflicts that can escalate in to inter-communal and group conflict. The current study shows that the area needs immediate attention from all concerned bodies and should implement different mechanisms and strategies to settle the conflicts. To bring lasting and durable peace, there is the need to adopt constructive and long term solution through considering the very nature of the conflict and its environment. Key words: conflict, inter communal conflict, Argoba, Karrayu.