Urban refugees and asylum seekers in Thailand are confronted with the complexities of autonomy and precarity beyond formal camp arrangements. Although cities offer some flexibility, refugees face systemic impediments that include the absence of legal recognition, restrictive immigration policies, and marginalization exacerbated by prolonged waiting, demonstrating the realities of being a refugee. This qualitative study examines the influence of Thailand's migration governance system on the realities of protracted displacement among urban refugees, utilizing in-depth interviews with 35 participants (14 key experts and 21 refugees) in Bangkok and peripheral areas. Findings indicate that Thailand's non-ratification of the 1951 Refugee Convention labels refugees as “illegal migrants” under domestic law, subjecting them to arrest and deportation in spite of UNHCR recognition. While most depend on insecure informal work, they are generally excluded from healthcare, education, and social protection, threatening their well-being and perpetuating a cycle of marginalization that hampers the likelihood for inclusion and self-reliance. The COVID-19 pandemic aggravated their precarious conditions, disrupted their livelihoods, and community support networks. The study also highlights how extended periods of legal uncertainty and administrative delays in refugee status determination magnify mental and emotional health issues and social exclusion. Therefore, it advocates for policy reforms that include strengthening Thailand's National Screening Mechanism through nondiscriminatory legal process, creating stable employment prospects by providing work permits, and ensuring equitable access to social infrastructures such as healthcare and education regardless of status. The findings also amplify extensive discussions on the management of urban displacement in non-signatory countries, illustrating how urban refugee populations are consigned to an indefinite state of legal uncertainty and heightened precarity.