Abstract: This study examined the problems associated with informal settlements in a planned neighborhood, using Eagle Island Port Harcourt, Rivers State as a study area. To achieve the objectives of this study, a detailed literature was reviewed on informal settlement. The study adopted survey research design as 120 structured questionnaires were designed and administered, eventually, 100 valid responses collected formed the data for analysis. The obtained data came from Eagle Island residents, officials of ministries of lands, Urban Development and Lecturers of Urban and Regional Planning in Rivers State University. In the course of the study it was discovered that the nature and conditions of existed informal settlements were identified as natural ageing of the building, poor sanitation within the vicinity, and poor health condition of the residents. The major associated problems of informal settlements as exposed by the study included increase in illness, forceful eviction, overcrowding, lack of privacy, low quality houses and uncontrolled development, marginality generation and exclusion of the vulnerable, structures demolition without prior notice and without adequate compensation. This study was restricted to Eagle Island Neighborhood, Port Harcourt, Rivers State and the selection of Eagle Island was mainly influenced by accessibility of the researcher and the recent forceful eviction and demolition of structures by the Rivers State Government, consequently the findings of this research will be taken as a representative for the entire country. The study provides detailed comprehensive propoor strategies which will contribute to the integration of informal settlements into a planned neighborhood to include poverty reduction strategies, site and services housing schemes, land regularization, provision of array basic facilities, comprehensive housing schemes and provision of public rental housing alongside the planned development. The study thus recommended that low income housing alongside comprehensive housing scheme should be provided. Similarly there should be provision of low cost public rental housing, provision of interventions in the housing sector among others. Keywords: Informal Settlements, Planned neighborhood, Eagle Island