ABSTRACT The main objective of this study was to investigate the causes and effects of internal displacement in three border kebeles of the Amaro Special Woreda, Southern Nations Nationalities, and Peoples Region of Ethiopia. This study employed a mixed-methods research approach in which the data were collected from primary and secondary sources. Qualitative data was generated through FGD and interviews. Quantitative data was collected using survey questionnaire and analyzed using statistical software, SPSS version 24. The study used systematic random sampling to select 340 respondents who participated in the survey. The quantitative data has been analyzed using descriptive statistics such as summary statistics, mean and standard deviation while the qualitative data has been analyzed themes and direct quotations. The situation of IDPs in Amaro Woreda has not received the attention it deserves. Thus, the IDPs are in a dire situation in the study area in terms of livelihoods, social services, security, and future hopes. The conflict between the two neighboring communities happens mainly due to resource-related factors and political motivations. As a result of displacement, the situation of the internally displaced persons is worse than their previous lives, as they lost their land, house, and property and had low access to essential social services, including security. The IDPs displaced from the three kebeles are experiencing different socioeconomic problems and challenges, such as landlessness, change in lifestyle or occupation, homelessness, and destruction of social services. According to the study findings, IDPs adopt coping strategies in new locations after displacement, such as making local drinks and selling charcoal, which is destructive to the environment. Thus, there is an urgent need for durable solutions for the IDPs in the study area and sustainable peace among the neighboring communities that get into conflict due to resource and political reasons.