Poverty is multi-faceted issue and deep-rooted in Ethiopia. The country is among the world's poorest nations in terms of human development index. The incidence of poverty in urban center of Ethiopia has been growing fast over the last few years as compared to the rural area. The main emphasis of this study is to assess the level and status of urban poverty and survival strategies of poor households in Asella town of Arsi zone in Oromiya regional state, Ethiopia.