<p>Rural households substantially differ in their degree of reliance on forest resources. This study examines the determinants of households’ dependence on forest resources in Ilu Abba Bora zone, a high-deforestation area of southwestern Ethiopia. Using cross-sectional data from 380 randomly selected smallholder households, forest dependence is measured as the share of total household income derived from natural forests. A fractional logit model is employed to analyze the determinants of the intensity of forest income reliance. The results show that forest dependence is lower among households with higher dependency ratios and those owning garden coffee, reflecting labor constraints and higher opportunity costs of forest extraction. In contrast, private tree ownership is associated with higher forest income shares. Household wealth is associated with forest dependence in a manner that is inconsistent with a strictly linear relationship, suggesting the coexistence of subsistence reliance at lower asset levels and forest-based specialization at higher levels. The proximity to forests increases forest dependence while greater distance to markets reduces forest-based income generation. Generally, household forest dependence reflects heterogeneous livelihood strategies shaped by various factors rather than subsistence necessity alone, highlighting the need for differentiated forest and livelihood policies.</p>