This study is carried out to assess the impact of urban expansion on tenure security and livelihoods of peri-urban areas. Tenure insecurity and livelihood problems due to urban expansion is more significant in the developing countries than the developed countries in the urban periphery. Ethiopia have created mounting competition for periurban land located adjacent to towns and cities by people of diverse backgrounds. As a result of these; pressures and rapid socio-economic problems has been occurred. Therefore, this paper is aimed to assess the impacts of urban expansion on tenure security and livelihoods on the communities around Wolaita soddo town. Descriptive research desi gns as well a qualitative and quantitative research approaches were employed. Both probability and non probability sampling method were used to get potential respondents and sample size was determined using sampling distribution of proportion method, hence 120 HHs were selected (85% (102) male and 15% (18) female HHs). Based on collected data the analysis was done using software like SPSS and Microsoft Excel and data were p resented by different data presentation tools like tables and graphs. The results from the study revealed that the expansion of Wolaita Soddo town has presented constraints and opportunities to people living in peri-urban areas. About 94 percent household responded as there is tenure insecurity. Due to having insecurity in their farm, there income from farm has decreased. Similarly, the study revealed us, because of town expansion periurban community, felt under malti-faceted livelihood problems; like loss of assets due to periodic land displacement, reduction farm land and under a great fear. On the other hand, increase in non-farm job opportunities and infrastructure development in the study areas are noteworthy. The development of new livelihood activities has culminated in the adoption of both farming and non-farm livelihood strategies were as livelihood means which selected by peri-urban community in the study area to cope with the effects of periurbanization. Key Words:-Livelihoods,Tenure Security,Urban expansion,Impacts and Farmers Perception, Urban and Peri-urban areas