Although African border regions are promising areas with a great potential to develop practical integration, the recurrent inter-communal conflicts have negatively affected the economic interactions between the border communities. This paper aims at assessing the effect of inter- communal conflict across the border between Ethiopia and Kenya in Moyale on the micro- regionalization. A qualitative method was employed, based mainly on the information obtained from secondary sources, focusing on the effect of selected communal conflicts such as the Borana-Garri conflict in Moyale Ethiopia and the Borana-Gabra conflict in Kenya Moyale on micro- regionalization. It is revealed that albeit the common historical background, existing cultural and ethnic affinities, and geographical proximity among the border communities of Ethiopia and Kenya that continue to provide a strong impulse for cross-border socio-economic interaction, the protracted nature of intercommunal conflict significantly affects this vibrant cross-border socio- economic interaction in the form of obstructing cross-border trade, market operation, free movement of people, and vehicles between Ethiopia and Kenya at Moyale. It is found that though inter-communal conflicts are non-state and intrastate disputes, they have also proved to have a consequence on the neighbouring country by affecting its national economic prospects and security due to their spillover effect. Effective micro-regionalization, peace, and development in Moyale will only be feasible in the future if the ongoing and protracted intercommunal conflicts in and around the Moyale micro-region are brought under control. Hence, this study suggests that prevention and resolution of ICC should be put at the top of the political agenda with the aim of buttressing cross- border micro-regionalism.