Urban expansion, construction of infrastructure, and construction of different industries are the main causes of land expropriation in Ethiopia. This study has aimed to assess the policies, laws and practices, applicable to the issue of land expropriation and payment of compensation in wolkite town. Specifically, this study evaluates the practice of expropriation procedure of the town with respect to the principles and procedures of the law. It assessed the practice of compensation payment in the town in line with the compensation principle’s of current expropriation law. Lastly, it identified the major implementation challenges of expropriation law in Wolkite town. To have a better insight and to gain a plentiful understanding of the research problem, the researcher employs a mixed research approach. And all the necessary data required for this study were gathered from both primary and secondary sources. For this study, the samples were selected by using a systematic sampling method, and key informants were selected purposively. In the study area, 145 sample respondents were included. Also, the researcher has gathered information by using interviews and focused group discussions with purposively selected respondents. The researcher used both qualitative and quantitative data analysis methods. The quantitative data have been analyzed, organized and interpreted through table, frequency, and percentage. The qualitative data have been analyzed and expressed in descriptive form and integrate with quantitative analysis. The finding of this study shows that, the practice of land expropriation procedure in the town usually not applied in line with the current expropriation procedural principles of transparency, participatory and accountability. And the practice of compensation payment of the town is not based on the compensation principles of the expropriation law. Finally as the finding of the study, even the government amends and includes different basic provisions in the current expropriation law, the absence of skillful experts in the valuation process, absence of a clear real property valuation policy and standardized valuation system, and the presence of legal gaps in the expropriation and compensation law are some of the major challenge to implement the expropriation process in the town. The practice of expropriation process should be applied based on what the expropriation law says.