The study was carried out on the history of urban poverty of Gondar town. The central aim of the study was to assess the nature and level of poverty in the town of Gondar. The specific methods employed including interview of elderly as key informants and document analysis from the existing source s; library, internet, archives reports and magazines. The result show that the majority of the population of the town was living in poverty by any - .. measures: income and non-incomes. Abstract The problem was the result of high population growth because of natural birth and usban ward migration, unemployment, food price inflation and low investments. The population sanitation, unhygienic environment, overcrowded housing situation, inadequacy and "-unavailability of public service and infrastructures were confronted the people of Gondar. Unemployment is a serious problem in the town. Poor human capital development, "the 'large number of job seekers and the static nature of new job creation resulted unemployment in the town. The above commutative effect resulted the increasing of prostitution begging and street children in the town.