The objective of the study was to assess the impact of 1997 land redistribution on wealth distribution of farm households in Hulet Eju Enesie Woreda, Amahra National Region State. Mixed research approach with sequential explanatory design was employed to address the research objectives. In doing so, both primary and secondary sources of data were gathered through questionnaire, key informant interview, Focused Group Discussion (FGD) and secondary sources. A total of 317 respondents were taken to address survey question items in accordance with the sample size determination formula by stratified sampling. Both quantitative and qualitative data analysis methods were used. Quantitative data was analyzed by using descriptive statistics while the qualitative data also analyzed thematically. A major finding is that despite of it benefited certain groups like, youths, females and landless peasants, the 1997 land redistribution caused a considerable landholding inequality between “Bureaucrat” and “Non-Bureaucrat” households which accounts 1.38 hectares. Landholding inequality resulted in high level of income inequality among households. The redistribution had negatively affected the livelihood and food security of “Bureaucrat” households which resulted conflict, tenure insecurity, income inequality, social discrimination and migration of people. As a coping strategy households were engaged in land rental/sharecropping arrangement and off-farm and non-farm alternative activities to produce food crop and generate income to cover their family food subsistence. However, due to lack of initial capital, poor market integrations, limited skills and lack of government attentions, off-farm and non-farm alternative activities are poorly expanded. Finally, the researcher recommended that the land distribution trend in the study area should revised and compensation should be paid to the “Bureaucrats” to their lost property and to balance the current land holding environment either in cash or in kind.