Globally, the emergence of slums is one of the major problems, especially for developing countries like Pakistan. Over-crowding and lake of planning are the major factors responsible for increase in slums. So, profound interest is being shown to overcome it. Different approaches are used for this purpose. Some slums are upgraded, some are provided with alternate places to live. Here in this study, we have analyzed the impact of relocation on the livelihood of relocated people. The aim of this study is to analyze change in capital assets (financial, human, natural, physical and social) and factors responsible for change in those capitals. Primary data is collected through household survey of sixty households. The conclusion of this study shows the positive impact of relocation on the livelihoods assets of the displaced people. The major positive change in physical, financial and human capital is observed while there is minor change in natural and social capital. But the overall livelihood index is increased. Ownership of house, better income, and better previous income are the components responsible for better living. The role of associations and NGOs is also very prominent in elevating the living standards. Satisfaction level with livelihood results is high. Therefore, the willingness to return among the displaced people is very low. Better education for children and social recognition prevents them to move back to their previous location. Supervisor:- Dr. M. Jahangir Khan