In the present study, the Water Stress Index for the selected area surrounding the Ulu-Sat forest reserve, Kelantan, Malaysia, was calculated. Water Stress Index was derived based on the ratio of water withdrawal to availability serves as an indicator to assess the status of water scarcity in the area. Water consumption for domestic purposes includes the daily water used for drinking and cleaning for households, while the non-domestic water used includes sectors such as agriculture (paddy and non-paddy), industry, and livestock. Estimation of water availability obtained from 3 stations located around Ulu-Sat forest reserve and the climate data obtained from the year 2008 to 2018. The water stress index presented in a range of 0.0 – 1.0. The result shows that the Water Stress Index value for Ulu-Sat forest reserve surrounding area obtained at an average of 0.32 for Machang, Pasir Puteh, and Kuala Krai. The result was implying a current low level of stress in Machang and Kuala Krai but the high-stress level in the Pasir Puteh area. The study also found that moderate to high-stress level occurs during the driest period of the year while low to medium stress level during the monsoon season. However, this ratio expected to further increase soon due to increase in water consumption and application. Hence, the importance of Ulu-Sat forest reserve in maintaining the stress level ratio low viewed as the utmost concern, especially in the dry season.