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Ethiopia has been resettling poor rural households both voluntarily and involuntarily from degraded and drought prone highlands to sparsely populated areas in the lowlands since the late 1950s. This study investigated resource entitlement and factors that influence perceived level of food and income security among resettlers of different origins and different length of stay in a district where resettlement has been practiced for over twenty years. The results of the study indicated the need to revisit the country’s rural development strategy that puts resettlement as one of the primary methods to ensure food security of vulnerable households given the heterogeneity among settlers in terms of origin, roles of women, and the overall need for minimizing the impact of resettlement on the environment. Selection of origin of settlers, ensuring women’s access to resources particularly land, diversification of livelihood activities should be promoted to improve food security. Besides, development of rural infrastructure notably roads and markets should be given due emphasis to enhance the role of non-agricultural income generating activities and thereby reduce dependence on dry forests.