Abstract Rapid urbanization in Ethiopia, driven by the government's efforts to modernize and diversify the economy, has led to significant land expropriation in the capital city of Addis Ababa and its surrounding areas. This process has resulted in the displacement of peri-urban indigenous communities, particularly in the Addis Ababa and Sheger cities in Oromia region. This study investigates the socio-economic, cultural, and policy implications of land acquisition on these communities. Through a comprehensive literature review and analysis of a survey of 223 evicted households in Lemmi Kura Sub city of Addis Ababa, we examine the consequences of land dispossession, including loss of livelihood, food insecurity, and inadequate compensation and rehabilitation measures. We also explore potential mitigation strategies, such as sustainable urban planning, land use management, and strengthening community resilience. Our findings highlight the urgent need for inclusive policies that prioritize the rights and well-being of marginalized communities while promoting sustainable urban development.