Police said bailiffs secured the pub in the early hours of this morning and about 20 squatters were removed.
The group took over the pub on Wednesday, June 17, in a protest against gentrification after estate agent Foxtons submitted an application to open a premises at the famous pub site.
Kazz Rafi, who works at Elephant and Castle Food and Wine, said five or six police vans and security crews arrived just before 4am today.
He told the Standard: “The people were sleeping inside and [police] told them to go. They were illegally inside – it’s not their property.”
The squatters were expected to move on to occupy another vacant building.
Historic: The pub has been at the centre of a row about gentrification (Picture: Laura Proto)Some were seen being forced to leave the abandoned pub in just their underwear while it remained dark outside.
Mr Rafi added since the squatters, a group of 20 to 25, arrived last month it had changed the feel of the area.
He said: “It is a lot of noise in the morning.
“It is more rough here now because of them. They smashed the glass on the pub about three days ago.”
 Historic: The pub has been at the centre of a row about gentrification (Picture: Laura Proto)
The group are said to have been mostly male Europeans and Mr Rafi said one older man, of about 65 years old, was also seen with them on occasions.
The pub, which has been part of the community since written records began in 1765, lay unused since March after it had its licence revoked following an assault.
Graffiti: One slogan outside read ‘better squat than let homes rot’ (Picture: Laura Proto)
This morning the abandoned pub was covered in graffiti on outside and signs placed in the windows reading “f*** Foxtons”, “Heygate, Aylesbury, Guinness Trust: Your Home Will Be Next!” and “Every great injustice has been at the hands of someone just following orders.”
Southwark borough commander Zander Gibson said: “The Elephant and Castle Pub has for many years been a central feature of life in the area. I totally understand that the topic of its future use and occupation has caused so much comment, concern and split opinion.
“Thankfully, the bailiffs were able to operate without the need for police intervention this morning and I’m glad the eviction took place without anyone from either side getting hurt.
“Whatever form the pub takes in the future, I look forward to it again becoming a central feature of life at the Elephant.”