Development studies are often accompanied by studies on displacement, which has become one of the most important areas of study in sociology. The term is used to denote a number of different meanings by various scholars. On the basis of those definitions we may assume that displacement may mean either a temporary or permanent change of residence by one person or a group of persons, which also involves breaking of home ties, besides a change of residence. The present study, therefore, aims to investigate the economic, socio-cultural and environmental consequences of Chamera Hydro Electric Power Project for the displaced persons and in the area. The study is based on data collected through primary and secondary sources. The primary sources have been the respondents who have been affected by the construction of Dam and thus displaced. The secondary sources have been the pamphlets, monographs and other literature on the subject. The analysis of data has been presented in two parts. The first deals with the profile of respondents and the other deals with impact of displacement on the economic and socio-cultural life of the respondents, besides the environmental impact in the area.