This paper attempts to assess the contribution of forest resources to rural livelihoods in Bench Maji zone. To conduct this research both qualitative and quantitative information was collected from four woredas in Bench Maji zone through questionnaire, interview and focus group discussion from 200 rural households. The finding of this study shows that the impacts of forest resources to rural livelihood are diverse in terms of livelihood means. Forest income is the second largest source of livelihood diversification next to agriculture. In addition, rural households in the study area use trade, rent of asset, and other source of livelihood strategies. The relationship between socio-economic characters of the respondents with forest resources shows distance, sex, family size, education level and access to agricultural land are significant determinant of forest resource use. As far as natural forest resources have an important contribution in the rural livelihood means, issues on forest resource and rural livelihood should not be ignored in policy decisions and other interventions. Consequently, steps to efficiently use forest resources should be undertaken by different bodies as one of the ways of improving rural households livelihood means.