Also, make sure toddlers have plenty of space. Because toddlers are small, it is commonly assumed that they need less space. Toddlers actually require more space than older children because they don't respect the space needs of other children yet. Furthermore, because they do not have good control over their bodies, they may accidentally move into another's space. If you provide several feet of space between children, this is less likely to occur.
Prevention is the most important part of handling toddler conflicts.
No matter how you try, though, there will still be occasional arguments and fights. When conflict occurs, deal first with the strong emotions involved. Rachel can't hear anything you say about fairness and rules while her head hurts. And Jimmy won't listen to you while Rachel still has the toy phone. Let the children know that you understand their points of view, but also tell them about how the other child feels.