The study was conducted in Eastern Cape Province to 1) investigate local people’s knowledge and perceptions on Euryops floribundus and 2) landscape distribution and effect of Euryops floribundus on herbaceous vegetation and soil. A total of 90 households who own livestock were randomly selected from the three communal areas, namely; Tsengiwe, Upper Mnxe and Manzimdaka for household surveys and group discussions. For landscape study, a total of about 5 ha of land were selected at Upper Mnxe communal area. Selection criteria included the presence of E. floribundus and different landscape gradients. A total of four 50mx50 plots were marked along the landscape gradients: Bottom, Middle, and Upper Slope and upland positions. To study the effect of E. floribundus invasion on the herbaceous vegetation and soil, a total of 4 ha communal land was selected in an accessible area which had a largely flat terrain. The area was selected to have adjacent sites with no invasion (< 5% shrub cover), light (5-15% shrub cover), moderate (>15-35) and heavy invasions (>35% shrub cover) of E. floribundus. The average household size in the study area was 6.8± 0.7. All people in the three communal areas unanimously ranked sheep as the most important species for their livelihood, but the ranking of cattle and goat varied among the communal areas. All elder groups agreed that Europs floribundus decreases both the quantity and quality of herbaceous forage as well as livestock production. Moreover, invaded patches create more bare areas which are responsible for the loss of top fertile soils and the formation of rills and gullies. The result showed that the total density of E. floribundus significantly increased from the topland (2301 plants ha-1) moving to the bottomland (4888 plants ha-1). Canopy cover was significantly lowest in the topland (17.9%), but the remaining gradients had similar cover. Grass dry matter yield was higher in the bottomlands and sloppy gradients than the toplands. Soil organic carbon was significantly higher (P<0.05) in the flat than the sloppy terrain. Soils from higher elevations (toplands and upper sloppy) had significantly higher N than the lower elevations (bottomlands and Middle sloppy). The lowest dry matter was observed at low invasion and non-invaded sites. Soil chemical properties were generally different from all density levels. In conclusion, E. floribundus encroachment was found to be major cause of decline in the peoples’ livelihood because as this reduces the vegetation diversity and livestock production, both of which are the major of their livelihoods.