Abstract: This study aims to analyze the dynamics of urban informal economic activities and urban sprawl handling on the suburbs of Manggala Makassar. Polarization of spatial function and suburban modernization becomes the determinant factor for the conversion of agricultural land use to urban industrial. This study used quantitative-qualitative approach. The data was obtained through observation, survey of 224 respondents and documentation. The research results show that changes in space utilization, changes in the pattern of urban transport movements causing urban informal economic activities to develop on the main road corridors. The dynamics of informal economic activity is a form of existence and community adaptation in responding the changing situations in urban areas. Urban sprawl on the suburbs area of Manggala Makassar has tendency towards single and unplanned land use patterns due to the weakness of spatial utilization control, so that, it impacts on ecosystem degradation, availability of green open spaces and urban traffic congestion.