Context and Background Rural land disputes were instigated due to various factors like the increases in population number, scarcity of farm land, poverty, the increase in rural land value, and weak rural land administration system were the indirect causes of rural land disputes and manifested in the forms of boundary disputes, inheritances disputes, transfer of land disputes, access, and ownership disputes. This study indicated the different variant shimglina customary conflict resolution mechanisms are contributing significant role in rural land dispute resolution. Shimglina is Golden peace culture in resolving rural land disputes in preventing destructive conflict violence. The social capital and social solidarity of the community is functional under the umbrella of shimglina and vis versa. Shimglina is vital to resolve conflict and disputes terms of its attachments with the living God, value of perpetual peace, reduce time to decide on the issue, resource, its accessibility to all members of the community, and restoring the broken peaceful interaction. Goal and Objectives The objective of this study is to examine the practices and challenges of customary conflict resolution mechanisms in resolving rural land dispute in the study area. The Goal of this study is providing recommendations for policy makers, community leaders, and land administrators and for peace and land dispute workers. Methodology This study employed qualitative research approach and data were collected using focus group discussion, interviews, and non-participatory observation; and relevant literatures and documents are reviewed. Informants were selected based on purposive and snowball sampling. The total number of informants participated in this study were 201. The data were analyzed through the use of thematic analysis. Results The findings indicated shimglina customary conflict resolution mechanisms played great role in rural land dispute resolution. People prefer it in terms of time, resource, accessibility, and restoring the broken peaceful relationships. Also, the study revealed, shimglina faced many challenges which hinder its effectiveness in the resolution of land use disputes. Lack of attention to shimglina culture of peace by the government, the intervention of government bodies in the process of dispute resolution, the absence of incentives to Shimageles (elders), the influence globalization are the challenges. The government should give attention to shimglina in rural land disputes for peaceful co-existence and community solidarity. Shimageles (elders) play vital roles which include arbitration, mediation, decision making, peace-making, and permit traditional oath and link the living with God. This study recommends; the government should give attention to shimglina culture of peace in rural land use disputes.