Forests play a vital role in the livelihoods of the associated rural communities especially in hilly areas where agricultural land is hardly available due to difficult terrain besides poor business and employment opportunities. Current study explores the social impacts of forests on the local communities of Margalla Hills in terms of services and goods, thereby reducing their expenditures. Results showed that respondents mostly depended on forest vegetation in shape of medicinal plants, wood for making their farm implements i.e. wooden plough, spade, blade etc. and domestic goods of daily usage i.e. charpoy, stool, baskets, furniture etc. The use of cheep and easily available forest vegetation, based on indigenous knowledge, has reduced household expenses on one hand but has also put tremendous pressure on forest vegetation on the other hand. There is need to create awareness on sustainable forest resource management and also provide job opportunities and other alternate facilities which lessen their dependence on forest vegetation.

Key words: Forests, livelihoods, Rural Communities, Margalla Hills, Pakistan.