The sudden presence of refugees significantly altered the lives of the local population in Kibondo District. The present study was carried out to determine socio-economic effects of refugees on the local community. It was geared specifically to determine economic status of local people in Kibondo district after refugees’ influx. Furthermore, the study investigated social effects of refugees on the hosts, attitude of people towards the refugees and mitigation efforts done by the government and other relief agencies to reduce effects of refugees on the local community. The study was conducted in Kibondo district which has been highly receiving refugees from various countries. Data was collected from households and individuals in the refugee host area. Other respondents included key informants such as the District Commissioner, District Natural Resources Officer; Head of UNHCR Suboffice in Kibondo district and District Medical Officer. Secondary data were documentary materials from the government reports, research reports, village records and books from University of Dar es salaam and Sokoine University of Agriculture libraries. A crosssectional survey was employed and covered 150 hosts’ households and 30 households in refugee camps. The study revealed that the opportunities available in the host communities changed in both positive and negative ways in agriculture, environment, market economy, infrastructure and social services context. On the positive side, refugees represented a source of cheap agricultural labour for villagers in the study area; refugees labour was attractive to local farmers because it was cheap and readily available hence increased production of food crops. Despite the benefits of refugee labour, many villagers blamed theft, particularly of food crops. On environmental perspective, refugees affected environment due to firewood and charcoal uses. The study findings can be used by a wide range of stakeholders and the government of Tanzania to create refugees’ policies.