This study investigates ethical tension situations that municipal managers face in their everyday working life by identifying the occurrence and nature of such situations, their contextual and organizational dependence and what resources are available to handle and/or solve them. The study is based on in-depth qualitative interviews with 21 municipal managers from various sectors. In total, 222 ethical tension situations were revealed. The main finding of the study is the identification of the importance of contextual and organizational dependencies, regarding not only managers’ experience of ethical tensions but also the resolution of such tensions. In the paper a contextual model of managerial tensions is presented that gives account to the different logics, value systems, norms, regulations, and ethics, that make up the complex world in which municipal managers find themselves and need to handle.