The study attempted to explore forest ecosystem services type and use in Soddie natural forest in Daramalo District, southern Ethiopia. This forest uses tangible and non-tangible services and goods for local community. However, unwise use of services leads reduction of their values overtime. So, this study is aimed at identifying the type and use of forest services for local community and analyzing socio-economic factors based on respondent’s perception. The study result revealed that majority of respondents perceived that forest might provide local communities for various provisional services (>90%), regulating services and supporting services (>98%) and cultural/aesthetic services such as; traditional cultural values, scientific values and education (100%, 88.89%, 68.15% respectively). Most respondents are predominantly agreed (81.5%) on the taught that absence of alternative resources in area should cause livelihood confusion pushing communities on the forest. Variables such as level of education (p=0.017), income source (p=0.012) are significant and positive factors affecting perception of respondents on forest service’s while distance of households from the forest (p=0.040), land size (p=0.014) and wealthy status (p=0.004) are significant and negative factors. Based on perception of respondent’s, the role of this forest ecosystem is relatively high. Therefore, the need to balance local community livelihood interests and conservation needs to ensure sustainable management of the forest.

Keywords: ecosystem types, forest goods, forest influencing factors, non-tangible forest services, tangible forest service