This research aimed at exploring the effects of a government relocation progra m on the productive assets of poor households relocated from Basha Wolde Chilot, one of the poor urban neighbo u rhoods in Addis Ababa. The article argues the relocation programme implemented at Basha Wolde Chilot has detrimentally affected the assets of poo r households associated with housing, which has had a tremendous impact on employment opportunities, access to social service provisions, transport costs, as well as social networking of evictees. A qualitative method has been used in the study. 21 study p articipants were drawn from evictees, government agencies, NGOs, and idirs 1 were involved in the research using Key Informant Interviews (KII) and Focus Group Discussion (FGD). The findings of the research revealed that the relocation program adversely aff ected the assets of poor households involved in the study and thereby engendered serious ramifications on the livelihoods of evictees including loss of market and an ensuing sharp fall in income, increasing transportation expenditure, time drain, loss of a ccess to public services, and breakdown of the neighbourhood support system (social capital) with vital resources for poor urban households.