This study was aimed at assessing the contributions of rural resettlement programme on thernlivelihood improvement of the resettled people: in the case of Basketo Special Woreda, SNNPR,rnEthiopia. In order to achieve this objective, the study employed both qualitative andrnquantitative research methods. The primary data was collected using survey questionnaire, keyrninformant interviews, FGD and direct personal observation. The secondary data sources werernused from published and unpublished materials. From the 469 resettlers currently residing inrnthe three resettlement sites, which are taken as a total population, 216 were selected usingrnsimple random sampling method. Purposive sampling was employed to select 28 respondentsrnfor key informant interview. The data was analyzed descriptively (for quantitative) and usingrnthematic narrations (for qualitative). On some key variables, inferential tests were conducted.rnThe study results show that the resettlement program was voluntary based; and has contributedrnto the diversification of the livelihood strategies of the resettlers. It was also found that after thernresettlement programme, the livelihood status of settlers have shown improvement in therndimensions of educational status and access to education (human capital), Iquib andrncooperatives (social capital), access to land (natural capital), livestock size and productionrntools (physical capital) and access to credit and availability of credit sources (financialrncapital). However, still the resettlers face challenges with regard to health service (humanrncapital), access to clean drinking water (natural capital), access to transport and marketrn(physical capital), variability in weather condition, diseases like malaria and recurrence ofrnconflicts in between the resettlers and the host community. Because of these challenges, thernresttlers are abandoning the sites. The study therefore concluded with the recommendation thatrnan integrated stakeholdersâ€™ intervention is needed to reverse the problems the resettlers arernfacing and scale up on the contributions of resettlement program in Basketo Special Woreda.