Resettlement schemes have been carried out in response to the recurrent droughts thatrnoccurred in the 1970s and 80s. However, the schemes were undertaken in coercive mannerrnwith out due consideration of the socio-economic and environmental issues related tornresettlement and long-term consequences resulting in socio economic as well asrnenvironmental crisis in the study areas. Particularly with regard to the physical environmentrnthe program lack environmental impact assessment and environmental management planrnwhich causes aggravated transformation of LULC in the study areas. The current study triedrnto see the impact of 1984/85 government sponsored resettlement program on the naturalrnvegetation in terms of landuse/landcover change in destination areas,Tula-Kuti and BeyemornKebele in Gimbo Woreda,Kafa Zone. In addition, a Cellular Automata Markov (CA_Markov)rnmodeling approach has also been applied to predict land use change for 2020. Thernlanduse/landcovers in Tula-Kuti for the respective years show a significant transformation, inrn1973 natural forest and shrub land covered 60 % and 32 % of the total area, respectively.rnCultivated land shared 6 % and settlements constituted less than 1 % of the area. But in 1987,rnafter a decade and half, shrub land declined to 11 % while natural forest, cultivated land andrnsettlements increased to 75 %, 12% and 1 %, respectively. In 2006, after three decades,rncultivated land and settlement constituted 32 % and 2% of the area, respectively. Whilernnatural forest and shrub land declined by 63 % and 2%, respectively. In 1987, the naturalrnforest and shrub land coverage in Beyemo Kebele was 33 % and 24 % in that order. Thernnatural forest declined by 29 % while cultivated land and settlements increased from 29 %rnand 1 % in 1987 to 47 % and 7 % in 2006, in that order. Marsh land in the area decreasedrnconsiderably from 13 % to 3 % in the specified period. With existing conditions, the trend forrnthe simulated LULC map of year 2020 indicates the same pattern. Cultivated land andrnsettlement will increase by 41 % and 13 % in the resettlement Kebele Tula-Kuti. The decreasernin biomass was the highest for natural forest which is 44 % while shrub land, wood land,rngrazing land and marsh land constituted a total of 2% in the area.This study recommendsrnthat, resettlement should not be taken as the best alternative to minimize drought and faminernor ensure food security, to guarantee effective food security in the long run, other strategiesrnshould be adopted.rnKey Words: Resettlement, GIS, Remote Sensing, LULC, Modeling and CA_Markov