This publication is a result of a specific study conducted for the degree of Master of Philosophy in Development Geography in 2009 on the impacts of urban displacement and the consequent resettlement of Addis Ababa, Ethiopia. It argued residential relocation has negatively affected the socio-economic well-being of the urban poor people. This is manifested in many ways. First, relocation has resulted in the loss of families ‘locational advantage''. Second, relocation has disrupted many home-based, small-scale income-generating businesses, is the domain of women. Third, relocation created a loss of community relationship and neighborhood support that revolve around community-based social (burial and church-based) and economic (saving) organizations. Yet, the impact of resettlement has variable outcome for the households in terms of the amount of compensation received, power relation with authorities and community participation in decision-making. It concludes urban renewal and resettlement policies must be consistent, well-designed and implemented in partnership with the involvement of people and their organizations, NGOs and the private sectors.