Ethiopia has a long-standing history of hosting refugees. The camp settlement was mostly settledrnin an area with high environmental sensitivity, poor pre-existing developmental infrastructure,rnand a high level of poverty. The objective of this study was to assess the impacts of refugee camprnsettlement on the host community environment sustainability in the Bambasi refugee camp. Thernchallenge and constraints for environmental sustainability in the refugee camps were identifiedrnin the reviewed literature. The study has used both qualitative and quantitative researchrnapproach with mixed explanatory methods to understand the impact and relationships betweenrndependent and independent variables through research. Particularly, the research designrncombines the household survey of socio-economic data analysis from target populations with thernobservation of satellite imagery data for the classification of land use land cover changerndetection from the year 2005 to 2020 in the study environment. The study found out that thernhumanitarian response and its performance was very poor and not satisfied the basic demand ofrnrefugee, the refugee camp infrastructure was very low such as poor shelter condition and poorrnsupply of alternative energy source, poor economy condition pushes refugees to highly dependrnon the surrounding environment. The establishment of the Bambasi refugee camp has increasedrnthe population in the study area and became a burden on the natural environmental resourcernaround the host community. Furthermore, the satellite imager of the LULC result indicated thatrnthe agricultural land class use increases by 21% from 1594.6 hectares (48%) in 2005 to 2307.8rnhectares (69%) in 2020. Conversely, the LULC change detection finding confirmed that thernforest land class has decreased from 1110.4 hectares (33%) in 2005 to 171.6 hectares (5%) inrn2020 due to an increase in the population of the refugee camp area. It was concluded that in thernlong -run the establishment of refugee camp settlement has put the host community'srnenvironmental sustainability in danger. Finally, the intervention needs to be recommended forrnthe humanitarian agency to develop alternative energy source, infrastructure, and activernenvironmental planning and management project that should include the indigenous knowledgernof the community and minimizing dependency of both refugee and host community on thernsurrounding environmental resource.