Traffic has resumed on the key Chittagong-Cox's Bazar Highway after about an hour's disruption.
Several hundred locals had kept the road blocked since 1:10pm on Saturday following the death of a woman in a clash over land in Patiya.
The victim has been identified as Zainab Begum, 40.
"Locals came out in hordes brandishing sticks and stood on the road impeding vehicular movement," Patiya police station's Officer-in-Charge Sheikh Md Neyamot Ullah said.
Police went to the spot and dispersed the demonstrators just after 2pm.