This study explores the socio-economic impacts of mining-induced displacement on marginalized communities in Sundargarh District, Odisha, focusing on three research questions: (i) identifying which livelihood capitals experience the most significant impact, (ii) determining the factors responsible for the non-restoration of these capitals, and (iii) identifying factors and strategies influencing livelihood resilience. Using a mixed-methods approach, changes in livelihood capitals were assessed across 14 villages, with data gathered from interviews with 85 displaced households and Focus Group Discussions with 16 stakeholders. The results indicate that displacement positively affects physical capital, but adversely impacts social, natural, and human capitals. Despite an increase in average annual household income, the overall effect on financial capital is negative, largely due to increased income inequality. The wealthiest benefited disproportionately from compensation, while the poorest, primarily tribal populations, faced heightened poverty and financial insecurity. The post-displacement outcomes for these households depend heavily on certain factors and strategies they adopt. Resilience factors enhanced adaptability and reduced environmental health risks. The implications of non-restoration of livelihood capitals have also been discussed, emphasizing the need for targeted interventions. These findings offer valuable insights for policymakers and stakeholders involved in resettlement and rehabilitation, highlighting the need for a holistic approach to ensure equitable and sustainable outcomes for displaced communities.