The main objective of this study is to investigate the psychosocial challenges and coping mechanisms among conflict-induced internally displaced person that sheltered in camps. It is also aimed to investigate gender difference on psychosocial challenges and coping mechanisms between male and female households. Moreover, the difference in terms of age, level of education, occupational status and type of shed among households is also investigated. To that effect, a mixed method research design was employed. Quantitative and qualitative data were collected from 130 respondents who were left their home in order to avoid the effects of armed conflicts. Simple random and purposive sampling were employed to households between the ages of 20 to 67 who were carefully chosen from the six shelters of Burayu town administration to participate in the study. In addition, both quantitative and qualitative data were generated from primary sources using both quantitative (questionnaire scales) and qualitative (FGD and in-depth interview) methods. The data was analyzed through various statistical techniques which include frequency, percentage, mean, independent sample t-test and one-way ANOVA. Accordingly, the study generally revealed several important findings about the psychosocial challenges and coping mechanisms among internally displaced person and sheltered in Camps. Men, compared to women, reported significantly higher experience of psychosocial challenges, higher perceived social support from their fellow displaced neighbors. Women reported higher emotion-oriented coping, but higher in engaging themselves into income generating activities, especially low-profile labor works. In the contrary, in both genders, educational and occupational status has no significant place during try to deal with the existing environment. Moreover, based on the results of the study, the following conclusions and implications were drawn. First, the IDPs that relocated in Burayu shelters are experiencing different psychosocial challenges, in turn, practicing different coping mechanisms in order to going through it. Second, women are more vulnerable to social deprivation, and better to emotion oriented coping mechanisms when compared to male.