First, I have to say we have ALL been there, but that doesn't mean there is a sure-fire solution. My strategy is to 1) divide and conquer: separate them as much as possible, preferably with other authority figures (e.g. your husband could take your daughter on a dad "date," to a movie, to a park - whatever and leave you and the toddler for some one on one time, and/or they can take turns going to "Grandma Camp," playdates, etc. 2) I find my older son has always been heavily invested in rule-following (like most first children). My middle kid is completely wild and rebellious. Time outs work for my oldest but only withdrawing privileges works effectively for my middle kid ("If you are going to fight over that toy, it will get put away until tomorrow." or "If you continue with that behavior you will not get dessert until Saturday.") As far as time outs go, I think 2 might be a little young for them to "get" why they are having one. My 2 year old is almost 3, and we are just starting to do time outs. The rule I heard was no more than one minute per years of age. Having said that, time outs can be more than just behavior adjusters - it can be a means to separate. Sometimes, in a very loving way, we would put the baby in his crib with a toy and suggest he may need five-ten minutes to calm down, close the door and take our own deep breaths. Oh, and 3) get them outside - particularly boys seem to really need to run, run, run. When my boys get wild, I just say, "Outside!" and they go. they may still be wild, but they are farther away from me. 4) Read to them - kids love to be read to and Mrs. Piggle Wiggle is GREAT for kids who are acting up (all about "cures" for bad behaviors). Good luck!