Most studies on dogs’ cognitive skills in understanding human communication have been conducted on pet dogs, making them a role model for the species. However, pet dogs are just a minor and particular sample of the total dog world population, which would instead be better represented by free-ranging dogs. Since free-ranging dogs are still facing the selective forces of the domestication process, they indeed represent an important study subject to investigate the effect that such a process has had on dogs’ behavior and cognition. Despite only a few studies on free-ranging dogs (specifically village dogs) having been conducted so far, the results are intriguing. In fact, village dogs seem to place a high value on social contact with humans and understand some aspects of humans’ communication. In this study we aimed to investigate village dogs’ ability in understanding a subtle human communicative cue: human facial expressions, and compared them with pet dogs, who have already provided evidence of this social skill. We tested whether subjects were able to distinguish between neutral, happy, and angry human facial expressions in a test mimicking a potential real-life situation, where the experimenter repeatedly performed one facial expression while eating some food, and ultimately dropped it on the ground. We found evidence that village dogs, as well as pet dogs, could distinguish between subtle human communicative cues, since they performed a higher frequency of aversive gazes (looking away) in the angry condition than in the happy condition. However, we did not find other behavioral effects of the different conditions, likely due to the low intensity of the emotional expression performed. We suggest that village dogs’ ability in distinguishing between human facial expressions could provide them with an advantage in surviving in a human-dominated environment.