Peoples’ utilization and management of non-timber forest products in a sustainable manner is influenced by traditional knowledge and regulations. Communities near forests in Southern Sumatra, Indonesia, continue to rely on forest resources to cover their basic needs. However, as more people use the forests to collect non-timber forest products, their availability is decreasing. Qualitative research methods and literature studies were applied in this paper to document local communities in the provinces of South Sumatra, Bengkulu, and Jambi in applying their traditional knowledge and local wisdom to manage dragon’s blood (Daemonorops spp.) and cinnamon (Cinnamomum burmanii Blume). These priceless NTFPs (non-timber forest products) played a significant role in supporting people’s livelihoods and protecting the natural resources in their forest area. The community implemented a sustainable harvesting system to maintain the availability of resources so that the community still has the opportunity to collect NTFPs as a source of income in the future. Along with the decrease in these natural resources, the community has begun to develop an agroforestry system of NTFPs, coffee, and other crops. This domestication activity was expected to ensure the sustainability of production and to prevent overexploitation of forest resources. In the long run, involving indigenous knowledge was needed in maintaining natural resources to achieve sustainable development of NTFPs agroforestry in Indonesia.