This study explores the dynamics of local communities in Pancasari Village, Buleleng, Bali, as they transition from traditional agriculture to the emerging camping sector. This transformation has led to significant economic, social, and environmental changes within the community. Economically, the shift has generated new employment opportunities, increased household incomes, and stimulated local businesses, thereby enhancing the village’s economic resilience. However, challenges such as potential inflation, uneven distribution of benefits, and increased vulnerability to external economic shocks have also arisen. Socially and culturally, the move to camping has altered traditional roles and lifestyles, facilitated cultural exchange and the introduction of new ideas but also posing risks of cultural dilution and commodification. Environmentally, the camping sector promotes sustainable tourism practices, yet it also brings negative impacts like habitat loss and increased waste. This study employs a qualitative research methodology, including interviews, observations, and document analysis, to understand these dynamics comprehensively. The findings highlight the need for sustainable planning and inclusive development strategies to address economic challenges, robust environmental management to mitigate negative impacts, and effective policy and governance frameworks to ensure equitable benefit distribution and stakeholder coordination. The study concludes that while the transformation to the camping sector presents significant opportunities for economic growth and cultural exchange, it also requires careful management to ensure long-term community well-being and sustainability. By understanding these dynamics, policymakers and stakeholders can better support the community through this transition, promoting balanced and sustainable development in Pancasari Village.