Building a positive work climate, where trust and participation are hallmarks, and where conflict and changes are seen as productive, can produce a dynamic and flexible organization. The aim of this study was identifying the factual organizational climate as perceived by nurses, determining the causes and effects of conflict, management strategies, positive and negative effects of conflict, and assessing the employees for the chosen strategy for conflict management. It was conducted in Assiut University Hospital using a cross-sectional design. Subjects included 195 staff nurses, 107 head nurses, and 2 assistant nursing directors, and the director of nursing services administration. Data were collected using the organizational climate questionnaire and the organizational conflict questionnaire. The results revealed that 73.4% of nurses considered organizational climate as positive. Inter-group conflict was the highest (72.8%). Almost all nurses were for confrontational resolution strategy (97.0%), while avoiding was the lowest (80.7%). Most nurses considered conflict resolution strategies effective (83.3%). Statistically significant relations were shown between inter-group conflict and nurses ' age (p=0.002), qualification (p=0.04), experience years (p=0.006), and job position (p=0.03). Positive organizational climate was associated with higher percentage of effective resolution, p