This study attempts to assess the significance of rural-urban linkage in enhancing the livelihood of rural community surrounding Assela town. The main objective of the study is to identify the types of urban-rural linkage and investigate current status of the linkages in order to recommend possible solution to strengthen the linkage between urban and rural community for better rural livelihood enhancement. Rural communities around Assela town have not used some significant opportunities that can be acquired from the town. On the contrary, those communities are negatively affected by wastes and contaminated waters released from the town. Designing an integrated plan for both urban and rural areas to strengthen the linkage and partnership between urban and rural area and importance of policy formulation for further urban-rural linkage issues are some of the given recommendations.