Domestic dogs (Canis familiaris) are a pervasive threat to biodiversity in developing countries. India has nearly 59 million domestic dogs, many of which are free-ranging. Free-ranging domestic dogs (FRDD) in rural areas often interact with wildlife that inhabit areas outside protected areas in fragmented and human-dominated landscapes. Understanding the spatial ecology of FRDD is crucial for targeted management, as not all FRDD exhibit free-ranging behavior that negatively impacts wildlife. We used location data from GPS-collared FRDD (n = 31; 177,251 locations) to determine how space-use patterns and habitat selection differ between two categories of FRDD – village and farm – in an agroecosystem in central India. Annual 95 % home ranges for farm FRDD (mean = 0.87 km2 ±0.18 SE) were significantly larger than village FRDD (mean = 0.11 km2 ±0.03 SE) but with high individual variation (0.02–2.21 km2 ). During movement, farm FRDD used various habitats (including natural grasslands) whereas village FRDD primarily used built areas. The top-ranked habitats in a compositional analysis for both FRDD types at the home range level (2nd order) were built, agriculture, and fallow lands, which reflects the broad association of FRDD with humans. However, farm FRDD had a higher selection of grassland, which represents an important habitat for wildlife in the region. Our study highlights that farm FRDD are more likely to interact with wildlife than village FRDD due to their space-use behavior. Therefore, we emphasize the need for responsible dog ownership and practices that limit the free-ranging behavior of farm FRDD that are compatible with their roles in farm management in the region.