Disputes in Australian universities cost millions of dollars each year that could be spent more fruitfully on core activities such as research and teaching. This paper uses three case studies to examine what we know about disputes and dispute resolution in Australian universities. The impact of changing higher education funding and policy on disputes in universities is examined. Finally, the paper considers how conflict handling in universities might be improved. It looks, in particular, at proposals for a national university ombuds and the use of alternative methods of dispute resolution and integrated conflict management systems in Australian universities.