Throughout its history Addis Ababa city has undergone a horizontal expansion pattern. Presentrnexpansion program implemented by the city administration is through intervention projects thatrnare large in scale and size. Bole Kotebe, Bole Bulbula, Malekanisa Labu and Keraniyo Booke arernperipheries of the city where the largest projects of residential expansion are being implementedrndislocating the farming community from these areas. This study investigates the effects of thernexpansion of the city on the livelihood of the dislocated farm ing communi ty in these areas.rnHousehold survey, participatory group discussions and key informants interviews were used tornassess the situation. The results of the study indicated that the implemented expansion program isrnnot participatory and have marginalized the farming community. The compensation schemesrnenvisaged for the loss of assets excluded youth and women. The dislocation programrnimplemented is not rehabilitative and negatively affected the livelihood of the dislocated farm ingrncommuni ty. Furthennore, the study revealed that women and children are major victims tornlivelihood crisis. The coping mechanism/strategy adopted by the majority of the dislocatedrnfarmers is casual that is directly or indirectly dependent on agriculture, which is being vanished inrnthe area. Dislocation program that may be proposed in the future needs comprehensive planningrnand implementation to ensure community part icipation and create alternative livelihood.rnKey words: urban expansion, dislocation, displacement, and livelihood, farming community,rncompensation, periphery and Addis Ababa.