Forest resources have been a major source of income for a sizeable number of the populace especially in the rural areas. This study therefore investigated the knowledge levels of rural dwellers on sustainable utilization of forest resources in Peri Urban Local Government Areas of Ibadan, Oyo State in which Oluyole and Akinyele Local Governments were purposively chosen. Using a multi-stage sampling procedure, 200 respondents were randomly sampled from the Study Area and data were collected using a structured questionnaire on their personal characteristics, knowledge level, accessibility and constraints faced in sustainable utilization of forest resources. Majority of the respondent 68.4% were males, had secondary education (34.7%). All the respondents (100%) were involved in forest resources utilization; majority (63.3%) sourced their information from forest workers. The high cost of forest resources (40.8%) ranked as the highest constraint faced in the utilization of forest resources. Significant relationship (x2=15.76; p≤0.05) existed between household size and the knowledge level of respondents on forest resources utilization. Also, there was a significant relationship (r=-0.712, p= 0.000) between knowledge level and constraints associated with sustainable utilization of forest resources. The paper therefore recommends the use of public-private partnerships in creating awareness on sustainable utilization of forest resources.