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Synopsis Forest resources of the country play an important role in the development of an economy and preserving environment. Forests are considered to be renewable resource conceptually but they are enlisted below critical zone. This is because such resources are sometimes deplete to such an advanced level that their natural recovery fails to take place, even when the exploitation has ceased. The forests are still contributing about two per cent to National Domestic Product while in the state GDP is about eight per cent. On the other hand forests check the soil erosion, control slope failure and a meliorate environment. The book as indicated by its name aims to apprise the readers about the role of forests on the economy and environment. Owing to its importance an analysis of forests policy and management has also been considered. The book is an outcome of extensive study for which a field survey was conducted in different parts of hilly districts of Himachal Pradesh. The book provides a vivid explanation to the forest resource and their importance in providing the livelihood to growing population and the need for sustainable forest management system. The book contains seven chapters with an introduction, objectives, methods and approaches in Chapter I, the Chapter II provides a theoretical background by analyzing the different characteristics of various resources with special reference to forest resource, Third chapter gives a detailed insight into the forest resources of Himachal Pradesh. Chapter IV present the role of forests in the economy of Himachal Prdesh. Impact of forests on the environment has been analysed in chapter V. This has been presented by giving some case studies. Sixth chapter is devoted to forests policy and management in which various national and state forest policies have been analysed. The final chapter presents a brief summary, conclusions and policy imperatives. This Book shall essentially provide a rich base to the readers and shall open new windows for further research.