India’s forests constitute a critical natural resource base that supports biodiversity conservation, ecological stability, and the livelihoods of millions of people. Forest products, including timber and non-timber forest products, play a vital role in rural economies, traditional healthcare systems, and national development. However, unsustainable extraction, population pressure, commercialization, and climate change have resulted in forest degradation and resource depletion. Sustainable utilization of forest products has therefore emerged as a central strategy to balance conservation objectives with socio-economic needs. This research paper examines the concept, scope, and practices of sustainable utilization of forest products in India, focusing on ecological, economic, and institutional dimensions. It analyzes forest resource diversity, the role of NTFPs, traditional knowledge systems, governance frameworks, and community-based management approaches. The paper also highlights key challenges and proposes strategic measures to enhance sustainability in forest product utilization.