The study has discussed the livelihoods of displaced people. The focus of this study was to explore thernreiocatees'livelihood assets and activities, to look at how relocatees are vulnerable to urban context,rnto examine the livelihood strategies employed by relocatees to cope up or recover }i'OIll thernundesirable outcomes of displacement and to assess the ali/cOllies of such strategies .In doing th is,rnthose people who were relocated to Nifas Silk Lafto were pUlposefully selected as stlldy community.rnThe study used quali/ative research methodology. Relevant data for the study were gatheredrnFom the secondary as well as primary sources. The main pri/1/C1/y data collection methodsrnwere household interviews, key informant interviews, foc us group discussion andrnobservation. To analyse the livelihoods of displaced people in holistic manner, this researchrnused sustainable livelihoodframel1'ork (SLF) as a lIIain theoretical and livelihood analy ticalrnFamework. The SLF is modified and operationalised in a tool thaI is relevant to thisrnparticular study.rnThe study reveals that relocating people Fom slum area to another location is important inrnproviding good housing quality and neat living environment, in making people lessrnsusceptible to poor sanitation induced diseases, enabling people to integrate with otherrncommunity, reducing women and children burden who were formerly responsible to collectrnwater, and providing children with open space for play. On the other side, the study foundrninsignificant role of local community in decision making process .It also found that a largernn1lmber of studied community have been directly a./Jected by loss of livelihood activities,rntraditional institution, social network, education, tramport and health service access andrnfinanCial capability. Due to loss of social cohesion and means of income disruption, therndisplacees are more likely vulnerable to urban economic shock more than the non-displacedrnpeople. There are various livelihood strategies that have been employed by displaced peoplernso as to manage the adverse e./Jects of displacement on their livelihoods. With this regard, thernstudy found that such strategies have both negative and positive impact either in short termrnor long run on the relocatees, especially on those who have directly involved in this strategy.rnFinally, the study suggests the importance of participating the community in decisionl1lakingrnprocess, facilitating micro-enterprises, credit service, training and taking in to considerationrnthe availability of school, health centre and bus termini in the new locat