This paper aims to assess the process of regularization of urban informal landholdings andrncompares with the law. In conducting this research, both primary and secondary data qualitativernresearch methods are employed. The regularization program is complex in nature and the timesrngiven by the law is inadequate, As a result, delays in the implementation of this activity createdrnfear or threat of forced eviction up on people. This is because they are afraid that someday therngovernment may evict them from their landholdings. Regularization by itself causes evectionrnbecause possessors who do not fulfill the planning and parceling requirement will be evictedrnfrom their possessions. On the other hand, regularization encourages others to grab state orrncommunity land in the hope of getting regularized. As a result, regularization triggersrndevelopment of informal landholdings. Findings of the study show that there has beenrninsufficient capacity of implementation in the city’s land Administration. Thus the existingrninstitutional set up and experts could not fit with the demands of the community who wantsrnsolution for the existing problems. The city Administration has no clear program to thisrnregularization program and this shows that less emphasis was given to the program and there isrnno commitment to solve the problem of informal landholdings. There has no additional structurernin the office for the regularization program and has no separate budget for the regularizationrnprogram. The existence of strong social network in the community save many people fromrndemolishing and evicted from their landholdings. Regularization has an effect on tenure security,rneconomic development and political stability. As the Oromia regional state spent four years byrnformulating, amending and repealing regulation and directives. The city Administration executedrnregularization contrary to the law. For the program to be implemented effectively there shouldrnbe well organized project office or department or team structurally at city level mandated tornundertake regularization program which prioritizes prevention measure rather thanrnregularization and eviction