This paper proposes that gahapatis and se??his had always been interested in landed property; and when Buddhist monasteries began to emerge as the land owning institution by the early centuries of Christian era, the cordial relationship between the gahapatis and se??his and Buddhist monasteries seem to crumble down. The gahapatis disappeared by the mid first millennium AD, the se??his appear to have taken up administrative positions in order to secure their trading interests at the same time. Hence, the relationship between the gahapatis and se??his and Buddhist monastery is the main focus of this paper. The paper problematizes this relationship and simultaneously aims to answer the following questions: first, what type of changes took place in the social position of gahapatis and se??his in relation to land, office (state administration) and trade between circa 100 to 800 AD?; Second, what type of changes took place in Buddhist sangha’s social outlook in relation to landed property?; And, third, what was the impact of these changes upon the relations of gahapatis and se??his with the Buddhist sangha?