Nigeria is a secular state with constitutionally enshrined freedom of worship. That is why Section 38(1) of the constitution empowers a citizen to manifest and propagates his religion in public or in private. Thus, religious expression in the public is constitutionally guaranteed. Urban areas serve as a terrain for space contestation by different religious groups owing to pluralistic setting of the country. Scholars have examined the implications of contestation for public space by religious groups from legal (Bhagwati 2004, Mazur, 2008; Rorive, 2009) and environmental (Ayantayo, 2006; Mepayida, 2011; Jon Abbink, 2011) perspectives. However, little attention has been paid to the inter-religious implications of contestation for public space by religious groups with particular reference to Oyo State. Therefore, the aim of this study is to examine the implications of space contestation by religious groups in Oyo State, Nigeria. Christianity, Islam, and African Traditional Religion, most especially Egungun and Oro religious groups will be examined. Descriptive survey research design was adopted. In-depth interview was conducted with religious leaders, youth and government officials. Ibadan, Ogbomoso, Iseyin and Igbo-Ora were purposively selected. The findings show that space contestation by religious groups instigate inter-religious conflict, unhealthy rivalry and competition, religious noise pollution, infringement on right to free movement.The study concludes that space contestation result in infringement on the rights of people to movement, restrictions on social and economic activites, diminishing of the aesthetic beauty of towns and promotion of unhealthy rivalry.