The twenty-first century is regarded as a century of urbanization since both the trends and rate of urbanization is very high all over the world. Bahir Dar is one of the rapidly growing Ethiopian cities characterized by the rise of horizontal urban expansion. As a result, large numbers of local landholders who are mainly engaged in agricultural activity for their livelihood have been forced to lose their land rights. However, the situation of displaced farmers and its impact on the life making of the ex-farmers around regional towns and cities has received less attention. Thus, the intention of this research was to explore the influences of Horizontal Urban Expansion and the Problem of Ex Farmers’ Coping to New Livelihood in Bahir Dar city, Ethiopia. The research is mainly descriptive in its design upon which both primary and secondary data sources were used. While conducting the research both quantitative and qualitative research approaches were applied. The study also used 309 respondents as sample participants. The result of the study indicates that the displaced farming communities are affected socially, economically and naturally by urban expansion. Socially the displaced farmers lost their social relationship and values like idir, iqub and sunbet mahiber in the new area after displacement and economically, displaced farmers’loss their livestock as a result of the decreased size of farming and grazing lands. Due to this fact, displaced farmers were obliged to sell their livestock assets to minimize and adjust according to the proportion of remaining farmlands. The researcher recommends that the concerned body in the study area should be developed vertical expansion instead of horizontal, to reduce the number of displaced farmers, the city administration must be put enough financial plan before undertaking the land from the farmers and the concerned body should be give training to the displaced farmers to adopt the new way of life