This exploratory study examines individual conflict handling styles and perceived family functioning in a sample of Australian family businesses. Given the complex nature of family business, understanding how families in business handle conflict and function is an important area for research. Respondents (n=54) were drawn from the database of the Australian Centre for Family Business. Family business operators are analysed against a control group of 49 non-family business respondents. Two validated questionnaires, the Rahim Organisational Conflict Inventory H (ROCI-II) and the Family Adaptability and Cohesion Evaluation Scales III (FACES-Ill) were used in this study. Significant differences were found between the two groups. Implications are discussed and recommendations for further research are included.