Land use dynamic facilitates and spurs economic growth by enhancing productivity and efficiency. This study analyzed agricultural land use dynamics and conflicts among rural households in Ekiti and Osun States, Nigeria. A multi-stage sampling procedure was used to select 90 respondents used for the study. Data were obtained with the aid of structured interview schedule and analyzed using descriptive statistics, T-test and Pearson Product Moment Correlation (PPMC). Findings of the study shows that most of the farmers in Ekiti and Osun States were male, married with mean age of 59 and 57 years and an average household size of six and seven persons respectively, but with low levels of education. A majority of them derived their sources of livelihood from farming activities. The study established changes in land use from subsistence agriculture to commercial agriculture and the establishment of dams and educational institutions. The study affirmed the eruption of conflicts resulting from land encroachment and farm job displacement in which the affected people were neither adequately compensated nor provided alternative sources of livelihood. The PPMC established a significant relationship between land use conflict and the livelihood assets of the farmers in both States. However, the result of T-test analysis established differences in farm size, farm output and farm income before and after the land use conflict in both States. The study recommends the sensitization and involvement of all stakeholders in decision making regarding agricultural land use dynamics in their communities, and appropriate compensation of rural households whose sources of livelihoods were hampered by the development should be done on time.