Internal displacement, rapid growth ofurban areas and proliferation of informal settlements are inthe spotlight of public policy debate in Afghanistan atpresent. This pamphlet discusses characteristics, livelihoodstrategies and vulnerabilities of households living ininformal settlements in three urban centers in Afghanistan.These findings summarize the analysis from a joint WorldBank-UNHCR ‘research study on IDPs in urban settings’, whichillustrates the complexities of displacement and of urbaninformal settlement growth. Motivated by an existingknowledge gap on these issues, the analysis provides astarting point for discussion among actors directly orindirectly involved with management of problems related todisplacement and urban informal settlements, includingdepartments in the Government of Afghanistan, internationalinstitutions and stakeholders from civil society. The studydocuments the significance of displacement as a factorunderlying vulnerabilities observed in informal settlements,and identifies IDPs as an extremely deprived segment of thepopulation, even in comparison to the profile of urbanpoverty in the recent national risk and vulnerability assessment.