This study is aimed to assess the environmental and social impacts, evaluate the projectrnimplementation and its barriers of implementation of the developmental projects on thernlivelihood of local community taking Mizan-Dima road construction project. Mixed methodsrndesigns which include both qualitative and quantitative were used. The participants of the studyrnwere household heads of project affected communities, the road construction project staff ofrnMizan-Dima Road construction project site. Purposively selected road section was taken fromrnproject stretch and all households from selected section were participated in the study. In orderrnto collect the data the researcher developed survey questionnaire, semi structured interview,rnfocused group discussion guiding questions. Secondary data were also included. Most of thernparticipants were suggested that the road construction project has positive impacts in enhancingrneconomic or livelihoods activities of the local communitiesâ€™. Another majority of the participantsrnreported the road construction has caused soil erosion, environmental pollutions and faunas andrnfloras disruption. Meanwhile, adverse impacts from projectâ€™s selected material extraction andrnprocessing sites like quarry and borrow sites, crusher and asphalt plant have also disturbed thernsurrounding communities convenience. Generally, the finding shows that there are negative roadrnconstruction effects in Mizan-Dima. Therefore, prevention and mitigation measures are vital inrnorder to enhance the positive impacts and mitigate the adverse project induced social andrnenvironmental impacts on water resources, wildlife species, soil erosion, sound pollution,rnlivelihood and other related impacts. Moreover, the contractor should comply the basicrnprinciples of EIA and implement the Environmental management plan appropriately to thernground during construction to minimize the negative impacts of the project. Future researchesrnshould endeavor to examine how to mitigate the impacts of road construction projects.