The purpose of this study was to analyzing effect of urban development project on the displacedrnresidents: the case of the Garment-Jemo upgrading project. the study conducts quantitative andrnqualitative methods of research and the research stands descriptive in type. Because the studyrnhas tried to describe the essential contributing issues of internal displaced and its socioeconomic, and mental effects on the displaces. data gathering methods like questionnaires,rninterviews, discussions and observations. The research questions of the study are “What is therneffects of Garment Jemo upgrading on the displaced communities? How the displaced cope withrnthe consequences of the Garment-Jemo upgrading project? “And To what extent do therndisplaced residents participate in the displacement programs focusing on consequences of therndisplacement? The most common and widely used conceptual framework of ImpoverishmentrnRisks and Reconstruction (IRR) and A quantitative research design was applied to research therncasual relationship of the development project dimensions to that of displaces systematicrnrandom sampling technique was conducted to select the respondents. Appling a structuredrnquestionnaire written in Amharic the researcher together with land management officers thernanalysis was performed using descriptive and inferential statistics by using SPSS version 20rnsoftware The findings of the study show that the former area (inner city) has multidimensionalrnimportance for dwellers in terms of source of their livelihood, residence area, center of socialrnsolidarity and as hub of all basic services and infrastructures. In contrary, the new arearnaccessing all these benefits is too difficult and the role of government in solving these problemsrnwas insignificant Besides, the rehabilitation program gave minimal attention to the social reestablishments in the new location. After this study the researcher persisted that, thernconsequence of relocations on relocates livelihood in terms of economy, social and basicrnfacilities and infrastructure. To improve these problems, researchers recommended that the cityrnmanagement of Addis Ababa crucially undertake a massive dislocation police design to affordrndecent houses for its communities and to modify the identity of the city over internal city slumrnrehabilitation.