Urban redevelopment programs have positive impact 011 the growth of the economy for the city by creating job opportunity and providing facilities 10 residents. !11 other hand, they cause disruption in the Iife of affected people h.v displacing from Their land. 1 his development induced displacement of households needs to attract adequate policy attention. This study was conducted to examine the impact of expropriation and the coping strategies of effected households and also identify policy options that will minimize the impact of expropriation on households of Kirkos sub city of Addis Ababa. The data used in this research ire.re collected mainly from primary sources of households located in Kassanchis Il and Africa Union II redevelopment programs. A two stage sampling procedure was used to select representative households from each redevelopment project. Accordingly, 98 expropriatee were selected as sample households and primary data were collected using structured questionnaire. Jn addition, key informant interview were made with selected city administration and sub city officials using semi structure questionnaire. The studv identified there exist laws, rules and regulations about expropriation, valuation and compensation, b111 the full applicability ofthese rules is in question, and only 28 6% of the expropriated households know these rules and regulations. With respect to the fairness of the type and/or amount rl compensation payment the survey result showed 87% of private householders said the compensation ims nor fair. while only 30.n% of the Kebele householders responded the compensation was not fair, which indicates a difference in sausfaction level of the two groups. The coping strategies of households fhr the adverse impact of expropriation in the study area is own saving (53.2%), received gifts and remittances (17%). involved in overtime work (16%), reduced diet quality and quantity (n.4%), both ow11 savings and received remittance(5.3%). changed their work (1.1%) and again sold their household assets (1.1%). Based on the overall finding' of the study the following policy implications are recommended. Amendment of the limitations in the existing legal system, establishing a Compensation Fund. establish proper resettlement and rehabilitation mechanism. establish social and economic networks in the resettlement area, raise awareness level of affected people. involve all stakeholders in the process expropriation and also application of/and sharing and land readjustment mechanisms. Key Words: Expropriation. Households. Fair Compensation. Coping Strategies, Resettlem