The main aim of this study is to identify the wide-ranging impact of urbanization on the farming rncommunity of Sululta, which is located 23 km north of Addis Ababa. Social, cultural and rneconomic impacts which are brought about by urban development are explored. In addition, the rnstudy also explores how the local farmers adapt to and resist the urban expansion. rnIn order to accomplish the objective of the study, thirty farmers were interviewed unstructured rnand semi-structured interviews; other seventy farmers were also consulted through survey rnqu~stionnaire in the course of the study. Furthermore, concerned government authorities from rnSululta Municipality were also sources of information for this study. rnThe results of the study show that urban expansion in Sululta is taking place at accelerated rate rnand also at the expense of local farmers' livelihood. It was found out that there was a gap rnbetween policy contents and implementation, which resulted in negative consequences on the rnlivelihood of farming community. rnSululta is facing a major social, cultural and economic change as a result of urban expansion, rnindustrialization, residential development and other formal and informal businesses. rnAccordingly, local farmers' livelihood, social relations and cultural practices are at risk. Thus, rnlocal farmers consulted for this study had developed dissatisfied feeling towards the urban rndevelopment in the area, and lost sense of belongingness to the development program. The study rnrecommended that, unless the urban expansion of the area is managed properly, the impact on rnlocal farmers' livelihood will be dangerous.