Study on traditional resources evaluation was carried out during summer 2008 in various parts of district Shangla. The potential for sustainable livelihood development in the region was assessed by analysing the forest dwellers' livelihood assets and perceptions of the forest livelihood. The study also explores the uses of forest resources and the methodology is largely based on the sustainable livelihood framework. The empirical analysis shows that local people protect forest resources with the view to producing forest goods, which are important for livelihood. The study inventoried 89 species belonging to 50 families which are used for various ethno-botanical purposes, such as multipurpose tree (9 Spp), timber wood (7 Spp), fuel wood (15 Spp) , fodder (24 Spp) , vegetables (9 Spp), medicinal (25 Spp), religious plants saved by Muslims (5 Spp) and Hindus (6 Spp), wild fruits (7 Spp), poisonous (8 Spp), tool making (6 Spp), condiments (4 Spp), brooming (3 Spp) and mud supported (2 Spp), thatching (6 Spp) and ornamental (5 Spp), while 24 species were recorded to have ethno veterinary medicine uses for the curing of different livestock ailments. A total of 9 medicinal plants were collected for commercial purposes and some handsome revenue was generated from their sale at local level. The study concluded that the area is rich in certain medicinal plants of commercial importance and possess great demand in the world market. They may contribute their share for the development of pharmaceutical industries in Pakistan and can become a source of sustainable income for the local community. Further study is, therefore, required to quantify the availability of species and to suggest new avenue for their conservation. Key words: Conservation, endangered, medicinal plants, ethno-botany, multipurpose plants.