In modern conditions, environmental protection, and forests in particular, is becoming one of the main components of effective public policy, given their importance in the context of the state’s welfare. Hence, it is essential to consider the impact of forestry on the development of the country’s economy and its ecological systems. The study aims to conduct a comprehensive analysis of all aspects of the development of the forestry sector in Ukraine, paying attention to the problems existing in this area. The main methods used in the study were analysis, forecasting, and abstraction. The study described the role of forestry and its impact on the economy in different regions of Ukraine and the environment. The study analysed statistical data describing the current rate of logging according to open statistical sources and forest restoration in Ukraine. The study found that the current state of forestry and use of forest resources in Ukraine is insufficient to promote the economic and environmental development of the country and that Russia’s full-scale invasion significantly affects the prospects for solving existing problems. Therefore, recommendations were made to improve the current state of affairs in forestry, including expanding the responsibility of forest users and wood products producers, increasing the efficiency of forest management, promoting innovation in forestry. The work brings new knowledge in the context of the study of the state of environmental development in Ukraine, and in particular the state of its forest resources. Its conclusions may be important in the context of formulating public policy and creating their development directions for forestry enterprises: woodworking, logging, tourism