Health status is a key indicator of human well being. Environmental pollution affects human health in many ways and contributes to a wide variety of diseases. Increasing attention is being devoted both domestically and globally to how environmental pollution affects human health. The agenda for the Sept 2002 World Summit on Sustainable Development identified health as an integral component of sustainable development, and called for a more efficient, equitable, accessible and appropriate health care system for the populations that rely on them. Scientific method for the assessment and management of related risks to human health and the environment is imperative for a developing country like Ethiopia where the exposure levels and variability are relatively higher. This paper examines the well being of the households in slums of Addis Ababa City, in terms of selected parameters. This study used two-stage random sampling technique. In the first stage three slum areas had been selected and in the second stage households were selected. A survey questionnaire used to collect required information. Findings: The study reveals that migrant households live in unhygienic and congested places devoid of basic necessities for a healthy life like housing, water supply, drainage and sanitation. Women and children are the worst victims. Physically, mentally and emotionally they are affected. The rehabilitation programme of the City project is totally inadequate in relation to the mushroom growth of slums. Hence, a comprehensive package incorporating measures to improve urban environment and health status should be launched on a massive scale.