The mix-up happened after repair work was carried out in Cliffords Mesne, Gloucestershire, leaving dozens of residents without a connection and others with different numbers.
BT Openreach has apologised and says it is working to put things right.
Resident Rob Wadley, 73, said: "There was a lot of hilarity about it but also a serious side to it."
He said the problem - caused by a damaged cable running through "some quite dense trees" - affected the entire village of 100 houses.
"They completed [the repair] in two days and when they reconnected all the homes, everyone had someone else's number," he added.
"Some had no phones and some had someone else's number. We got a telephone call for the local town councillor. We soon found out."
Another resident, John Franklin, 65, said: "If you take our next-door neighbour, she is an elderly lady and has one of these emergency buttons. Her family use it to get in touch so it was quite serious as far as she was concerned.
"There are some people who work from the village and they were very cross. One fellow said he was losing Â£1,000 a day."
A spokeswoman for BT Openreach said: "We're sorry for the problems experienced by a handful of customers in Cliffords Mesne this week.
"The issue arose whilst we were carrying out essential maintenance to one of our overhead cables, and we're working hard to put things right as soon as possible.
"We would encourage anyone affected to contact their service provider as we are updating them regularly."

The local Indomitable Lions are away to Sao Tome and Principe on Saturday in the first leg of the latest round of qualifiers for the African Nations Championship (CHAN) - a tournament which is contested by footballers playing in their own domestic league.
Song has called up 20 players for the two-legged tie.
People should stop thinking that cheating death means I no longer have a normal life
"Initially I had no idea about Sao Tome and Principe, but I have done my homework to know their playing style," Song told BBC Sport.
"I have prepared my team to help them give their best performance and put our opponents in difficulty".
Song resumed his coaching job just months after suffering the brain aneurysm which almost claimed his life.
The legendary defender took ill in October 2016 and was hospitalised in Yaoundé where his condition stabilised before he was taken to Paris.
He returned home in April and after some months, resumed duty as head coach of the local based squad.
He insists he has recovered and says he is fit enough to resume his coaching duties.
"My situation today is ok, I can say I am 80 percent fit already," said Song.
"People should stop thinking that cheating death means I no longer have a normal life.
"I feel good and with my staff we are working for better results," he added.
As he now embarks on the weekend's CHAN qualifier, he does admit to being a novice in the coaching arena.
"It is my first time, but I have worked hard with my assistant coaches and we will try our best.
"We have confidence our players will put up their best performance" Song said.
Song played 137 times for his country and had spells with English clubs Liverpool and West Ham.
Before taking up his present role, Song signed up as the national coach of Chad in 2015 but his stay was short-lived.
Villagers were left with their neighbours' phone numbers by bungling telephone engineers.
[NEXT_CONCEPT]
Former Cameroon captain, Rigobert Song, who suffered a brain aneurysm ten months ago, is preparing for his first coaching mission with the home-based national Cameroon side.