Abstract: The increasing degradation of the natural resource base and the quality of the environment are jeopardizing the livelihoods of millions of Ugandans and threatens the country�s attainment of development targets including the Poverty Eradication Action Plan (PEAP). The purpose of this study was to examine the contributions of environmental incomes to people�s livelihoods and determine the socio-economic factors that influence the household dependency on environmental resources around Mt. Elgon National Park (ENP), eastern Uganda. Data from a household survey conducted in 2005 were analyzed using logistic regression. The results shown a high rate of dependency on environmental resources among the poor people who collect several types of goods from the forest for both direct consumption and trading for their basic livelihoods. However, the rich households with diverse and reliable sources of incomes showed a low environmental resource dependency rate. The study further revealed that several household level factors such as ethnicity, distance of the settlement to the park boundary, age, household size, landholding and, the level of education significantly affect the total income derived from the national park. The important policy implication from this study is that an effective management strategy for national park and forest ecosystem should be consistent with the overall socio-economic development and any policy formulation process should clearly consider the socioeconomic characterization of the households.