The proliferation of forest degradation is of major concern to the human population because it affects and impacts their direct environment on a daily basis. The main focus of this study was to investigate the socio-economic importance of forest exploitation and the environmental impacts of the consequent deforestation in Dimako and its environs. The methodology used was based on primary data obtained from the study area through the use of a questionnaire to identify the various ways forest exploitation is benefiting the population and how deforestation has impacted their environment. The study also made use of published information by the council authorities on land use activities in Dimako. The findings revealed that there are several socioeconomic benefits of forest exploitation in Dimako. Also, the environmental impacts of the consequent deforestation in Dimako, which have severe negative repercussions on the human population, have been revealed. There has been a gradual and consistent decrease in the rainforest of Dimako as well as its biological diversity (both flora and fauna). This deforestation is mainly caused by the activities of logging companies extracting wood from the forest, and individual inhabitants in the quest to exploit forest resources for their livelihood. The effects have been consistent forest degradation and consequently deforestation. This study therefore recommended planning and implementation of sustainable forest survey and monitoring the conservation practices which are in line with sustainable management of the forest.