Studies have shown the significant roles of traditional institutions in the resolution, transformation and management of intra-communal conflict. Yet, the institutional strides on intra-communal conflict resolution are not without persisting challenges. Hence, this necessitates the need to investigate why traditional institutions are still being confronted with challenges on intra-communal conflict resolution. Using Southwestern States as a case study, the paper adopted the descriptive survey method. Quantitative and qualitative data were sourced and analysed for the purpose. This paper found out that organisational resources, poor communication and information networks and possibility of trade-offs among the traditional authorities constitute the challenges confronting the traditional institutions on intra-communal conflict resolution. This paper concluded that the potentiality of traditional institutions could only be harnessed if the challenges are addressed with corrective, creative and contextual measures. It further recommended that commitment of the traditional structure of governance, proper guidance, organisational resources and inspectoral supervision from higher levels of government as well as the provision of operational facilities and modern logistics would strengthen the traditional institutions in tackling aforementioned challenges bewildering the intra-communal conflict resolution processes.