<p>Forests provide ecosystem services (ESs) and ecosystem disservices (EDs) to the local community living in and around the forest. The current study examined the trade-offs between forest ESs and EDs at different distances from the forest edge in southeast Ethiopia. The study employed a household survey, focus group discussions and field observations along six transects, laid down in a pair-wise design in six study villages. The study findings revealed that forests provide diverse services to the local community such as water sources (93.9%), firewood (89.40%), and woods for construction purposes (89.40%). Spatially, a significant statistical difference was observed between nearby and far away dwellers from forest edges about the perceptions of forest services; with more percentages being reported along the forest edges. Most respondents (59.1%) indicated their involvement in forest protection and tree plantation and retention in their land fields to augment ESs. Family size and education level were important factors determining the level of farmers’ participation in forest management. Similarly, diverse forest disservices were also reported by the farmers. Crop-raiding wild mammals such as porcupines (86.4%), bush pigs (83.3%), warthogs (72.7%), vervet monkeys (56.1%) and olive baboons (53%) were frequently cited as raiding one or more of crops, especially maize, in the study villages. Higher impacts of wild crop raiders were reported along the forest edges. Crop guarding (93.9%) was the most widely used disservices control measure. Hence, sustainable forest management strategies are required for mutual co-existence between crop-raiding wildlife and local communities to create a sustainable socio-ecological system.</p>