Our study explores the nexus between forests and local communities through participatory assessments and household surveys in the central Himalayan region. Forest dependency was compared among villages surrounded by oak-dominated forests (n = 8) and pine-dominated forests (n = 9). Both quantitative and qualitative analyses indicate variations in the degree of dependency based on proximity to nearest forest type. Households near oak-dominated forests were more dependent on forests (83.8%) compared to households near pine-dominated forests (69.1%). Forest dependency is mainly subsistence-oriented for meeting basic household requirements. Livestock population, cultivated land per household, and non-usage of alternative fuels are the major explanatory drivers of forest dependency. Our findings can help decision and policy makers to establish nested governance mechanisms encouraging prioritized site-specific conservation options among forest-adjacent households. Additionally, income diversification with respect to alternate livelihood sources, institutional reforms, and infrastructure facilities can reduce forest dependency, thereby, allowing sustainable forest management.