The prevalence and potentials of Argemone mexicana on biodiversity was assessed at Farta, Gondar and Bahir Dar zuria districts. The study areas were stratified into 100 m by 5 m as roadside, fallow land and farmland transect belts. Its effects as poultry feed component were studied on three poultry breeds. Body weights, abnormalities in appetite, egg production and health were recorded. The results indicated that the mean prevalence of Argemone per transect belt in roadside land (17.41 ± 5.9) was higher than that of fallow land (3.35 ± 0.8) and farmland (2.65 ± 0.8) at Farta district. The number and distribution of native plant species under the shed of A. mexicana in roadside, fallow land and farmland per transect belts were 1.15 ± 1.6, 2.25 ± 1.8 and 1.15 ± 0.5, respectively. The number and distribution of Argemone plants in the roadside land per transect increased by 163.4%, 158.5% and 151.9% from 2006 to 2010 in above respective districts. The mean losses in appetite, body weight and egg production were higher in exotic and cross bred than in indigenous chicken ecotypes. Therefore, A. mexicana had negative impacts on biodiversity, native plant species and when used as animal feed components.