Abstract In the recent years, an extensive body of literature has emerged on the definition, measurement and analyzing of urban poverty. This paper provides a meaning and understanding for the term urban poverty and explores the concept of urban poverty, vulnerability, and urban poverty dynamics that underpin this meaning. It reviews ‘who’ is poor and ‘why’ they stay poor and what is known out there about policies in reducing urban poverty. Specific conclusions regarding towards the conceptual framework of urban poverty reduction issues are discussed. With the resources and literatures available today, however, there is no excuse for hundreds of millions still living in urban poverty around the world.