Development induced displacement is a risks associated with development intervention whichrnmany countries in the word, including Ethiopia, face. Strong and sustainable economic growthrnis what every country aspires to achieve their respective ‘development’ goals. However, there isrnno single method that can be applied to achieve the stated development goals. Moreover, therernare always associated risks with development. One of the associated risks of development isrndisplacement of people which give rise to social, economic, political and environmental risks.rnThis is mainly because of lack of appropriate policy emplaced that can be used to properly guidernthe development process for successful mitigation of the associated risks.rnThis research therefore explored risks associated with development intervention, specifically,rnimplementation of a manufacturing project. In order to explore the associated risks qualitativernmethod of research, in which case study design was followed, was conducted. In depthrninterviews, focus group discussions, key –informant in depth interview, observation andrndocument review methods were used for data collection. The major findings indicate due to lackrnof appropriate policy emplacement, the displacement had exposed the displacees to variousrnproblems which caused impoverishment, DID in a case of manufacturing had a differentrnassociated risk with other development projects interventions induced displacements even if theyrnhad also many similar associated risks, there was no proper implementation of the displacementrnand relocation program in a case of manufacturing, the displacees attitude towardsrndisplacement was negative, and the displacees had not employed effective coping strategies torndeal with the negative effects of displacement. The study findings are very informative and canrnbe used as an important resource for policy makers and researchers