Abstract In Ethiopia, the amount of compensations paid to farmers and others who sacrificed their properties or lands for road construction is inadequate. On the other hand, the country has enacted legal frameworks for compensation of expropriated properties. This study was conducted to assess real property valuation practices for road construction in the context of expropriation and compensation legal framework for properties lost as a result of road construction that passes through Bahir Dar Zuria Woreda and Adet City Administration. Accordingly, the important data were collected by using clustered random sampling techniques for expropriated households and using data collection methods that are key informant interviews, structured questionnaires, and focus group discussions, and also secondary data collection. A mixed-method of research and descriptive research design was used and data was analyzed using SPSS. The findings of the study revealed that there is an institutional arrangement that implements property valuation and compensation legal frameworks and these are urban or woreda administration, property valuation committee, resettlement committee, and grievance redress committee. However, the study concludes that they are not well implementing the rules and the regulations because there is no responsible institution that controls them at a higher level. The analysis reveals that the valuation method used by the valuation committees does not follow the rules and regulations and also it is not in line with the international valuation methods. In the study area, the major challenges encountered in the process of property valuation and payments of compensations were lack of effective administration institution, lack of skills of experts in valuation and compensation, and inconsistency change of road design. On the other hand, in the study area, the economic effects of expropriation of properties on affected households had immense effects on the losses of properties, changes in income level, and also change in employment status. Generally, the majority of the expropriated households are highly dissatisfied with the amount of compensation. Therefore, the abovementioned valuation practices could be an input to amend the expropriation and compensation legal frameworks that are currently used and fixing the right compensation. Keywords: Expropriation, Property Valuation, Compensation, legal framework