The present study examined the extent and pattern of households' dependency on forest for fuelwood and livestock grazing and identifies, analyzed the key factors that determined the level of households' dependency and access to forest resources, and explored the role of ecotourism development in reducing the same. The study used primary data collected randomly from 300 households residing in the Buxa Tiger Reserve (BTR). The study found that the majority of households (88%) engaged in fuelwood collection, and the annual average fuelwood collection was estimated to be 1,502.8 kg. About 56.67% of households were found to be engaged in grazing activities, and on average, 2.57 adult cattle units were brought inside the forest for grazing. The regression results suggested that the education of the household head, household income, liquefied petroleum gas availability, participation in ecotourism, livestock availability, social background (caste), and the number of household labour were the key determinants of household dependency on fuelwood, while the age of the household head, family size, land holding size, participation in ecotourism, and social background (caste) significantly influenced the level of household grazing dependency on the BTR. Most households were affected due to restrictions levied on access to forest resources. Income from forest, fuelwood collection, agricultural landholding size, household dependency ratio, and forest department awareness levels were the key determinants of households affected by protected area (PA) restrictions. Household participation in ecotourism was found to be effective in reducing household dependency on BTR, but it did not adequately alleviate the impact of PA restrictions on their livelihoods. Hence, sustainable ecotourism, along with the provision of smokeless stoves and renewable energy, such as solar, could go a long way in reducing pressure on the BTR and sustainable management of the reserve.