Impact assessment of Lantana camara L. on indigenous species composition and socioeconomic environment was carried around Aroge Adama, Soloqe and Bishfitu areas, Ethiopia. Fifty-four 5m x 5m releve’s were systematically sampled across 3 main transects laid 50m from the left side of the main road. In order to reduce the effects of human interference, the sites selected were, as much as possible, far away from the main road. The releve’s were equally distributed for the three study sites. In each site equal number of releve’s with & without Lantana camara were sampled from the same habitat types. All indigenous species in all non-invaded and along with Lantana camara in all invaded releve’s were counted, identified & recorded. Diversity & richness was analyzed using Shannon-Weiner species diversity & richness index. Herbivory was found to be the most prevalent form of disturbance. ANOVA results at p<0.05 level of sig. showed that levels of disturbances were variable but are higher in the invaded releve’s as compared to the non-invaded releve’s. Independent sample t-test & one-way ANOVA showed significance difference at p<0.05 level. To asses invasion impact Spearman correlation coefficient was calculated for altitude, disturbance, density of Lantana and diversity of native plants. Disturbance and density of Lantana were highly correlated to diversity of native plants. ANOVA results showed significance difference in disturbance, density of Lantana and altitude in invaded releve’s and only disturbance showed insignificance difference in the non-invaded releve’s. The study revealed disturbance as the major factor, which facilitated the invasion of Lantana camara. Different respondents have different views on its introduction & current status. Fifty six percent of them agree with its deliberate while 44% with its accidental introduction. Seventy-fourpercent of the key informants admitted the benefits obtained from it even though they maintained the disadvantage out-weighs its advantages. Thirty seven percent of the key informants responded as there are methods to minimize the detrimental effects & use it to improve biophysical & socioeconomic condition of the areas.