Various nontimber forest products (NTFPs) are produced from the forests and woodlands of Yemen. Dragon’s blood tree resin is one of the commercial NTFPs in Yemen and is produced by tapping Dracaena cinnabari trees, which are listed as vulnerable by the IUCN (International Union for Conservation of Nature) Red List. By applying a forest resource assessment, the present study inventoried the D. cinnabari forest with the aim of identifying and evaluating its structure, the harvesting status of the resin, and the current management system. The study was conducted in the Firmihin forest, Socotra Island, Yemen Republic. The forest resource assessment was carried out through a forest inventory by measuring trees from 12 plots following stratified random sampling. The relevant parameters of a total of 819 trees were measured, including the tree height, stem height of lowest branches, height of the highest wound, diameter at breast height (DBH), and presence of wounds. The wounds were measured on a total of 401 trees. Value chain analysis (VCA) was used to clarify the flow of dragon’s blood tree resin from the producers to the local, national, and international markets. Traditional management was examined using questionnaires in the case study area and surrounding villages. There are two tapping techniques: (1) collecting the pure dragon’s blood tree resin and (2) cutting part of the bark along with the pure resin. The second technique resulted in 84% of the trees having wounds. The tappers were mostly from the community in and around the forest. The study found that the traditional management system of tapping dragon’s blood tree resin is not sustainable.