This work addresses issues of poverty and livelihood strategies of households in urban Ethiopia. It examines incidence, depth and severity of poverty by focusing on income and household situations of households in Mekelle City, Tigray, Ethiopia. It also explores various strategies households employ to cope with poverty, mainly the role of social capital in its form of family relations, neighbour-hood reciprocity and community based self-help organizations. Current policies and strategies of the government, their implementation at local level and implications on the poor households to alleviate poverty are also highlighted. Policy makers and stakeholders who have interest in assisting poverty reduction efforts can be benefited from this work. Also, academicians and researchers who are interested in urban poverty issues may use the book as a reference for further studies.