Infrastructure development is pivotal for socioeconomic advancement, yet project implementation frequently encounters conflicts that undermine effectiveness and sustainability. This study interrogates the conflict dynamics influencing infrastructure project implementation in Arola, Oyo State, Nigeria. Grounded in Realistic Conflict Theory, the research explores how power imbalances, and struggles exacerbate tensions within the community, affecting project outcomes and sustainability. Utilizing a qualitative methodology, data were collected through key informant interviews, in-depth interview, involving community leaders and community project management committees. Findings highlight that conflicts arising from leadership disputes, poor communication, misappropriation of funds, lack of transparency, and divergent interests between project committee and community authorities significantly delayed and derail infrastructure initiatives. The study underscores the necessity of integrating conflict-sensitive approaches in infrastructure development to ensure inclusive participation and equitable benefit-sharing. It recommends enhanced capacity-building for local institutions, and coordinated stakeholder engagement for project management committee, working with existing leadership structure towards mitigating conflicts and fostering sustainable project implementation. The study contributes to policy discourses on conflict dynamics and complexities in infrastructure projects within fragile local contexts.