Violent conflicts resulting from rural banditry have become a recurring decimal in Nigeria’s drive to nationhood. It has assumed a grievous dimension in recent time thereby threatening peaceful coexistence but with dearth of literature on the environmental dimension of the Taraba areas of the country. This study therefore examines the conflict management mechanism put in place to check to curb the problem of rural banditry and its effect on socio-economic development in Taraba State. The research also adopts the primary source of data collection which is qualitative in character base on the triangulation method. This methodology affords the research the opportunity to generate data from semi-structured interview, focus group discussion and observation of informants and conflict areas. The investigation shows that the nature and causes of the conflict is multifaceted, thereby assuming different dimensions that include ethnic, religious, economic, political and environmental. It has led to change in inter-group relations and mutual mistrust among the peoples between famers and herdsmen taking its toll on people’s standard of living, while the vulnerable groups which include women and children have suffered severely as a result of the conflict. The study also shows that the conflict has affected economic activities in the form of trading, markets and agricultural production, and livestock production like meat, dairy products, hides and skin and bones have also been affected. It also shows that the conflicts have led to break down of law and order which culminates in destruction of lives and property and displacement of people which explains the humanitarian effect of the conflict. It recommends that the various responses by the community, government and Non-Governmental Organizations (NGO) in finding solutions to the conflict must cooperate to frontally confront the menace of this recurrent rural banditry debacle. And concludes that the conflicts can be resolved only when the most important stakeholders in the conflict, the bandits who are mostly Fulani’s and the settlers who are mostly famers, are made to sheath their sword for dialogue and willing to make compromise on areas of conflicting environmental interest.