Urbanization is recently rising all over the world, particularly at an alarming rate in developing countries. Likewise, most towns in Ethiopia recently are expanding towards the peri-urban areas. The expansion of these towns result the conversion of cropland to urban land uses. This study aimed to assess the impact of urban expansion on croplands in Adet town and its effects on peri-urban households’ in terms of loss of cropland and income change. The study used descriptive survey research design. Firstly, the researchers used open-source remote sensing satellite imagery data of three different periods of 2005, 2014, and 2023 to assess the extent of urban expansion into rural cropland. Then, the researchers used household surveys data, where data collection tools such as questionnaires and interviews utilized. A combination of purposive and snowball sampling techniques was employed to ensure the representativeness of sample kebeles and households respectively. The survey data were analyzed using percentages, frequencies, and paired sample t-test. In addition, the LULC changes happened in the study area for every 9 years of the last 18 years area was analyzed using ERDAS IMAGINE 2015 and Arc Map 10.3. The LULC change analysis showed that cropland and grazing land decreased from 3633.3 to 3158.6 ha and 689.13ha to 533.3ha respectively between 2005 and 2023. Whereas built-up and forest area increased from 108.81ha to 692.06h and 1035.63 to 1082.92 respectively in the period between 2005 and 2023. The expansion of built-up area leads for the shrinking of cropland that result a decrease in households income. The mean household income before cropland loss was 2.66, while the mean income after the loss dropped to 2.56. These problems have managed by addressing rural-urban migration, training on income generation, and the government should involve in the construction of condominiums on small plot area size.