Abstract Forest degradation poses a critical threat to the livelihoods of rural communities in tropical regions, yet empirical evidence linking environmental decline to household-level outcomes remains limited, particularly in understudied ecological zones. This study assesses the impact of forest degradation on rural household livelihoods in the Central Zone of Taraba State, Nigeria, employing a convergent parallel mixed-methods design. Quantitative data from 391 household surveys were integrated with spatial analysis of Landsat imagery (1993–2023) to evaluate land cover change and its socio-economic correlates. Findings reveal that forest degradation driven primarily by agricultural expansion, fuelwood extraction, and weak regulatory enforcement has significantly diminished livelihood security. Key impacts include reduced access to fuelwood and medicinal plants, decreased agricultural productivity, and heightened vulnerability to climate variability. Regression analysis further indicates that forest degradation negatively predicts household livelihood outcomes (β = –0.408, p < 0.001), with female-headed and larger households experiencing heightened vulnerability. Conversely, higher education levels and older household heads correlate with improved resilience. The study underscores the urgent need for integrated policy interventions that promote sustainable forest management, enhance alternative livelihood options, and strengthen local governance. These findings contribute to the growing discourse on socio-ecological resilience and provide evidence-based insights for sustainable rural development in Nigeria’s forest-dependent communities.