This paper attempts to explore the compelling causes, processes, and consequences of displacement from Eritrea in 1991 into Addis Ababa, Ethiopia. The model of migration, theories of Aided Self Help Housing, and Empowerment Approaches of Alternative Development were employed as a guiding framework for the research. Triangulation method has been used to generate the necessary data. The findings identified that the defeat of the Derge government and shift of political power into the hands of Shabia in Eritrea played the vital factors for the displacement of Ethiopians into a number of countries. Along the arduous journey and refugee life, displaced Ethiopians came across the mistreatment of the Shabia forces and severe shortage of basic needs for survival. The study proved that 92.3% of the sample respondents of Kore community depend on informal sector as the sole means of earning their livelihood. However, the repatriates at Kore benefited in accessing temporary shelter in Addis Ababa, base of organized negotiation, and social services though they were marginalized. The lack of open discussion widened the demand of the community against rehabilitation capacity of the government agencies. The delay of appropriate rehabilitation measures by the concerned government institutions as well led the repatriates to be opportunity seekers. Thus, the Kore squatters demanded the government with provision of either urban land or public houses and other benefits in Addis Ababa. Such escalated demand of the community mostly ended up with frequent contradiction on the claim of urban landholding. The rehabilitation measures have to find ways that incorporate the demand of the community and capacity of the government through open discussion. Such participatory discussions can resolve the conflict and lay down bases, which improve the living standard of the people.