Ethiopia has the largest forest land resource in the horn of Africa with a total of 12.5 million hectares (ha).The livelihoods of most the peoples in the country are highly interlinked directly or indirectly with forest resources. It plays enormous environmental, socioeconomic significance and thereby contributes a great role in the sustainable development of the country as well. However, most of the forest resources of Ethiopia are highly exposed to degradation at an alarming rate. A century ago, forests covered about 40 % of the total landmass of the country. The spatial pattern of the forest has been shown a rapid decrement from 40% in 1900 to 16% in 1954, 8% in 1961, 4% in 1975, 3.2% in 1980 and now it is estimated to be less than 3%. The spatiotemporal forest cover change in Ethiopia has been attributed to natural and more importantly manmade factors. The major drivers of forest cover decline can be grouped as proximate driving factors and underlying driving factors in Ethiopia. Proximate driving factors of include; expansion of resettlement, expansion of agricultural practices and charcoal burning and cutting trees for fuel whereas, underlying driving factors include; economic, institutional, technological, cultural, demographic and biophysical factors. The alarming rates of forest degradation have been posing environmental, social and economic problems. The environmental implications of forest degradation are climate change, siltation of water bodies, and degradation of wetlands, soil erosion, and reduction in agricultural production. Therefore so as to reverse the current situation of forest degradation and maintain ecological balance, there has to be an inclusive responsibility by all levels of communities. The governmental and non-governmental organizations, farmers as well as the private sectors should play their own role in protecting the forest resources.