Squatters have now become integral part of urban centers in most developing countries like Pakistan, with Lahore experiencing growth of such informal settlements at its peak. A myriad of issues and challenges associated with economic, social, spatial, environmental and political contexts within squatters has become a great hindrance towards home improvement and better lifestyle. Tenure security brings a sense of homeownership to socioeconomically disadvantaged households.  It is need of the time to look into present tenure types of squatters being offered by the city to solve problem of housing backlog and to provide promote inclusivity ensuring healthy, affordable and sustainable environment for all inhabitants. Proposed argument has got stronger foundation due to comparative analysis of squatter having secured land tenure with squatter of unsecure tenure. In this paper we explore that tenure security is one of the key factors which leads to resident’s stability, through case study approach by investigating two squatters based on their tenure types. The data collected through questionnaire will help us to identify other key factors associated with resident stability in squatters. Study reveals that limited secured tenure options and poor governance in present urban scenario projects as major obstacles in coping with urban sprawl and squatter settlements. Findings help us to understand the phenomena of inter-connection of land tenure security and residential stability of squatters in Lahore, suffering from housing shortage and informal settlements. Land is fundamental component of urban development. The possession of land shows the social and economic stability of any community. The war for land has been a constant dialogue for centuries as it provides ecosystem services, employment opportunities and wealth generation. No progress is possible without land. It proves that land is most crucial part to acquire for achieving affordable shelter. However, tenure security alone is not enough for attaining affordable and adequate housing, yet it serves as one of the key factors for access to improved housing. Other factors such as housing finance, provision of infrastructure, adequate planning, and relaxation of building codes and regulations have been identified as significantly affecting low-income people‘s access to housing, improved livelihoods and environmental conditions (Nyametso, 2010). Many developing countries like Pakistan, India, Bangladesh, Ethiopia, Nigeria, face such issues of land tenure and squatter settlements. Also, in developed countries, land ownership represents the single powerful assets to be owned by anyone. This comes along with the importance of land tenure and its security which provides relief to the tenants. Land tenure has evolved as a significant terminology of housing studies.