Food insecurity is a significant issue impacting millions of people compelled to abandon their homes due to conflict, natural disasters, or economic difficulties. Cash incentives have become a critical mitigating tool in alleviating the food insecurity challenges of these displaced populations amid COVID-19. This paper examines the determinants of food insecurity and how cash incentives alleviate food insecurity among displaced populations. The study used the 2020–2021 high-frequency survey data to achieve this objective. The high-frequency survey continues the 2019 Cox Bazar Panel Survey baseline, representative research of Rohingya displaced after 2017 in host communities in Bangladesh's Cox's Bazar district. Receiving cash transfers (incentives) is significantly associated with lower odds of experiencing food insecurity (OR = 0.19, CI = 0.91-0.380). Female participants have higher odds (OR = 3.44, CI = 1.41-5.36) of experiencing food insecurity than their male counterparts. Being a recipient of assistance from UN agencies was associated with slightly lower odds (OR = 0.88, CI = 0.69-0.97) of experiencing food insecurity. To achieve sustainable food security, we must integrate cash incentives into a comprehensive social support system that includes employment initiatives, affordable housing, healthcare, and education. This holistic strategy can address the underlying reasons why people face food insecurity, giving them the tools and chances to become stable in the long term and less reliant on short-term monetary incentives.