The purpose of this study is to examine the post expropriation livelihood of displaced community in the study area. In this paper the adequacy of compensation given to displaced farmers, satisfaction of the displaced community, social and economic condition, and the rehabilitation mechanisms taken by respective bodies and the livelihood condition of the displaced community were assessed. The study examined how the affected farmers are rehabilitated and the type of compensation which is preferred by affected community. Three kebelles with high expropriation practice were selected from the total 14 kebelles purposefully to collect quantitative data. Focus group discussions and interview were also employed to collect qualitative data. Generally 135 sample respondents were taken to collect the necessary data. The study was held to find what the livelihood condition displaced community looks in general and specially women and other vulnerable groups. The result of the study indicates the displaced households were not satisfied by the type and amount of compensation given to them. This is because the cash compensation did not compensate all types of losses. Despite displaced landholders preferred replacement land they had been given financial compensation which was much less than the expected. The displaced households didn’t attain any training. Rehabilitation mechanisms were not introduced after the payment of compensation. As a result of this the displaced landholders faced social and economic problems. Therefore considering the in adequacy of the compensation laws related to expropriation and compensation should revise well. Resettlement trainings and Rehabilitation mechanisms should be introduced in order to restore the livelihood of displaced community.