Dependency on forest resources by peripheral communities may create problems in managing a protected forest, particularly, when the current resource utilization cause damages to the ecosystem. Identifying the socio economic factors influencing the dependency is one of the initial steps needed in developing a comprehensive management plan for a protected forest. This paper attempts to identify the socio economic factors influencing the forest dependency of the peripheral communities in the Knuckles Forest Range. Data were collected from eighty households living in the periphery of the forest using a structures questionnaire. Stratified random sampling procedure was adapted to select 80 households. Two forest dependency models foe total and total and subsistent forest dependency were developed incorporating eleven socio economic variables. Results show that involvement in non-agricultural activities and higher productivity of paddy reduces forest dependency of the villagers. Those who are involved in cardamom production, chena cultivation and those who rare buffaloes are more dependent on forest resources. When both subsistent and commercial forest based activities are put together, higher income groups show greater dependency on forest resources. Education shows a negative impact on forest dependency when subsistence activities are only taken into account. In overall, the development process will reduce the subsistence forest dependency over time. Better education facilities, creating more non-agricultural employment opportunities for the peripheral community and implementing programmes to upgrade agricultural productivity can be recommended as measures to reduce dependency and forest resources in Knuckles area. These measures, however, may not reduce the commercial forest dependency.