This paper explores the economic and political implications of internal migration in Myanmar. Over the past 30 years, Myanmar has witnessed a major demographic transformation due to a host of factors including displacement from war zones, state-led relocation projects, voluntary migration undertaken for better economic and employment opportunities, and intermarriage. Despite the dire situation in Northern Rakhine where an estimated 1 million Rohingya fled into Bangladesh from atrocities committed by the Myanmar army, however, inter-communal relationships across the country remain relatively peaceful. Why is communal violence confined mainly to Rakhine state, and has not affected other areas of Myanmar that have experienced rapid demographic transformation? How do we assess inter-communal relationships and levels of tension in areas that have not experienced overt violence? Do local residents react differently to migrants with different religious or ethnic backgrounds or legal status? How has the nature of economic exchanges between local and migrant populations affected intercommunal relationships? This paper will use Myanmar as a case study to examine the differing relationships between host and native communities, and their causes and consequences. It is based on secondary analysis of relevant data published by governments and non- government organizations; and on an in-depth, field-based study aiming to identify the factors that account for both hostile and peaceful communal relationships.