Spatial urban expansion in developing countries, not exceptional Ethiopia, puts immense pressurernby taking peri-urban fertile agricultural land to buildups. Thus, this study aims to investigate thernimpact of urban expansion on household food insecurity and poverty. A mixed-method explanatoryrnsequential research design was applied. Crossectional data were collected from 341 householdsrnwhere 101 partially displaced and 240 not-displaced households using a survey questionnaire andrnqualitative data were generated from focus group discussion and key-informant interviews. Foodrnsecurity status of households was measured using different indicators to capture the keyrndimensions of food security. Likewise, the nutritional status of children under five ages wasrnmeasured using anthropometric measurements and composite index anthropometric failure. Therndeterminants of food insecurity were analyzed using binary and ordered logistic regression models.rnThe multidimensional Poverty Index was applied to measure household poverty. Similarly, binaryrnlogistic regression was applied to identify determinants of multidimensional poverty of households.rnStochastic frontier analysis was employed to estimate production efficiency while associatedrnfactors that affect production efficiency were analyzed using the Tobit model. Lastly, a multivariaternprobit model was applied to examine agricultural technology adoption of smallholder peri-urbanrnfarmers. The impact assessment of food availability showed that displaced households consumern146 kcal less than non-displaced households with no statistical mean difference between displacedrnand non-displaced households. The prevalence of multidimensional poverty was higher amongrndisplaced households with a statistically significant mean difference between displaced and nondisplaced households. Living standard and health dimensions highly contribute to overallrnhousehold multidimensional poverty. The production efficiency showed non-displaced householdsrnwere technically, allocativelly, and economically efficient than displaced households. Displacedrnhouseholds' tendency to adopt agricultural technology was lower than non-displaced households.rnGenerally, urban expansion intensifies poverty, reduces production efficiency and technologyrnadoption of households. The researcher recommends Bureau of agriculture should tirelessly workrnto increase production efficiency as priority agenda to halt the food insecurity and poverty of thernstudy area.