Urban poverty is one of multidimensional issue in Nepal. Increasing immigration from the outer parts of Kathmandu due to rural poverty, unemployment and weak security of the lives and the properties are core causes pushing people into urban areas. In this context how squatter urban area people sustain their livelihoods is major concern. The objectives of the study are to find out livelihood assets and capacities squatters coping with their livelihood vulnerability in adverse situation. Both qualitative and quantitative methods are applied for data collection. It is found that squatters social security is weak, victimized by severe health problems earning is not regular with lack of physical facilities and overall livelihood is critical. This study helps to understand what the changes that have occurred in livelihood patterns and how poor people survive in urban area.
