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Involuntary displacement from one’s land and habitat carries with it the risk of the migrant becoming poorer than before displacement, since a significant number of migrants do not receive adequate compensation for loss of their assets nor effective assistance to re-establish them and make them productive. Unless the local government puts special attention to proper rehabilitation and resettlement of displaced families, especially tribes, they will continue to be victims of such programs and be drawn into pathetic situations. In this backdrop, the present study has made an attempt to find out the impact of involuntary displacement and rehabilitation of Indira Sagar Project on the tribal community in the State of Andhra Pradesh. An ethnographic method has been adopted to carry out this study. The fieldwork of research was conducted in December 2015. To collect primary data anthropological tools and techniques were used to study the various aspects of displacement, and rehabilitation. Secondary data has been collected from books, articles, reports and available literature. The study finds that the impact of dam-induced displacement and resettlement brought change among the families resettled in the rehabilitation colony. [ABSTRACT FROM AUTHOR]