The present study on socio-economic and socio-ecological aspects of Sambalpur Forest Division of Orissa reveals that forests play an important role in the economy of the State in terms of contribution to state revenue, State Domestic Product as well as dependence of people for livelihood. The people living adjacent to the reserved forests of Sambalpur Forest Division (pre-reorganised) are heavily dependent on these forests. Although the nominal forest cover of the state continues to remain unchanged one notices a gradual decline in the effective forest cover of the state. Feb 2008