Background: Villagization scheme was chosen as a policy option and implemented to ensure sustainable food security in Assosa zone, Benishangul-Gumuz region, Ethiopia, although it is blamed for intensifying food insecurity instead. Therefore, the present study aimed to examine the food security status of households gathered in planned villages in the framework of villagization. Methods: This cross-sectional study was conducted on 344 households who were randomly selected. A questionnaire was used after exploring the perception of village communities about the nature of food security. Food security status was measured using a household food balance model (FBM) that uses calorie threshold value of 2100 Kcal/Adult Equivalent (ADE)/day. Results: There were some basic services and infrastructures in the planned villages, although most of them were supplied before the implementation of villagization scheme. The scheme did not improve the food security status of households in the villages; since about 67% of them were food insecure and only 33% were food secure. The proportion of food insecure households is much more than the recent national figure of 40%. Conclusion: In spite of the fact that some basic services and infrastructures were supplied in the planned villages, villagization did not improve the food security status of households; in contrast food insecurity remained high. The scheme was merely supplied the service and infrastructures without improving economic access to basic services and infrastructures. It is recommended to conduct a study investigating why villagization could not improve the food security status according to the intended purpose.