The global number of individuals experiencing forced displacement has reached its highest level in the past decade. In this context, the provision of services for those in need requires timely and evidence-based approaches. How can mobile phone data (MPD) based analyses address the knowledge gap on mobility patterns and needs assessments in forced displacement settings? To answer this question, in this paper, we examine the capacity of MPD to function as a tool for anticipatory analysis, particularly in response to natural disasters and conflicts that lead to internal or cross-border displacement. The paper begins with a detailed review of the processes involved in acquiring, processing, and analyzing MPD in forced displacement settings. Following this, we critically assess the challenges associated with employing MPD in policy-making, with a specific focus on issues of user privacy and data ethics. The paper concludes by evaluating the potential benefits of MPD analysis for targeted and effective policy interventions and discusses future research avenues, drawing on recent studies and ongoing collaborations with mobile network operators.