This study is about the causes of negative effects of urban development projects on relocated residents. Inrnthe context of negative effects of urban development projects on r elocated people, plenty of researchesrnhave pronounced. Such relocation caused by development project occurs because of slum demolishing,rnurban expansion and renewal of the city’s facility and infrastructure. The study was conducted in AradarnSub-city, w hich i s v ast development pr ojects and r elocation pr ograms h ave been i mplemented. T hernoverall aim of the study was to explore why relocation has been affecting relocated people by assessingrnthe c auses of t he n egative ef fects, an d t hen pr opose pr ospective r ecommendations t o i mprove thernlivelihood of the relocated residents.rnRelevant information was collected from primary and secondary data sources. Primary data was gatheredrnthrough s nowball s ampling t echnique o n t he b asis of s tructured questionnaire t hrough i nterviewingrnselected r elocated h ousehold h eads, r esearcher’s own observation. S econdary data was also reviewedrnfrom previous studies, journal articles, unpublished academic studies and websites. The study made usernof bot h qualitative and q uantitative methods to analyze the data. The majority of the relocated peoplernexplained that t heir relocation i n t he new s ettlement has af fected t hem i n s ocial di sarticulation ( 81%),rnjoblessness (45%), marginalization (78%), homelessness (45%),and f ood insecurity (58%). S hortage ofrnpreparation time, inefficient decentralized administration system, and lack of compensation scheme werernidentified as t he m ajor c auses of t he n egative effects of r elocation. To change t he ne gative effects ofrnrelocation due t o ur ban dev elopment pr ojects i nto pos itive r esult, pr oper planning, f ollow-up an drnevaluation of the implementation of the project need to be c arried out by concerned bodies. To this end,rnensuring t he i nvolvement o f pr ivate i nvestors, o ther s takeholders and gov ernment’s f inancial s upport i srnrecommended