Due to climate change and its consequences to islands and coastal countries, the relocation of the people living in those vulnerable places has received a lot of attention from policy makers as well as academicians. There have been similar kinds of programs running in Bangladesh since the country’s independence in 1971, and people who are landless or victimized due to river bank erosion, cyclones, or floods have been relocated under the umbrella program called ‘Guchchagram’, i.e., cluster villages. Different ruling parties had used different names for the project due to the financial nature of the project, but none of them have significantly differed from the overall goals and objectives of relocated settlements and the betterment of the landless and extreme event victims. Particularly, this study asks how and to what extent the livelihood of relocated households has changed, and what the potentials and constraints of the relocated settlements are. Based on an empirical study at four Guchchagrams of Gopalganj Sadar Upazila, the study shows that there is a significant improvement in the livelihood conditions of the migrated people, but the locational disadvantages and access to agricultural production, the local employment market, and some of the targeted objectives of the project have not achieved. To some extent, the rehabilitated families have similar risks as they had before; however, available agricultural lands and proper allocation can reduce such livelihood risks.