Climate change is a global environmental threat which has affected the entire global communities by its impacts such as rise in temperature,changes in precipitation pattern,prolonged drought,landslide and flood. Livelihood of the poor and vulnerable people has been more difficult and people are migrating from rural areas to new urban cities. This study focuses on assessment of impacts of climate change on migration and livelihood challenges of migrants in the squatter settlement. It provides an over view of the total number of migrated households living in the settlement due to climate change along with the current state of environmental infrastructure and services available in the settlement. Moreover it suggests an urgent government action for the management of the urban squatters and describes how the solution of livelihood problems in the settlement can be linked to mitigate and adapt to climate change such as rainwater harvesting, flood control wall and biogas generation from bio-degradable solid waste. It deals with an integrated adaptation strategy for mitigation and adaptation to climate change improving the livelihood of squatters.