It is important that you don't avoid dealing with the conflict and hope that it goes away. Acknowledge the dispute before things get out of hand. Putting it off might not be an option. The longer it's left, the worse it will become. So, use your leadership skills and address the issue.
As a leader you need to know when to confront a dispute. Choosing the right time can make the difference between solving the issue or making it worse. Assess the situation, get hard evidence and have a meeting to address it. Putting it off will have your team losing trust and respect in you as a leader.
As complicated and unmanageable as conflict may feel, knowing the limitations and boundaries of your team is important. This will give you the upper hand with managing the situation because you'll know how those involved will react. You'll know their trigger points and this will allow you to tread carefully and avoid going overboard when dealing with it.
A dispute can stem from something as simple as a difference in opinions. As such, when you're handling it, make sure to respect the opinions and differences of everyone involved. Hear everyone out to get a better idea of what the core issue is.
If conflicts are dealt with well, they can be a great learning process for everyone. Your response to it will determine the outcome.
Don't avoid dealing with the conflict
Know when to confront a dispute
Know the limitation and boundaries of your team
Respect opinions and differences