The Ashanti region in Ghana, abundant in natural resources such as forests and vegetation biomes, significantly supports the livelihoods of a significant portion of the population. The sustainable management of forest resources remains a significant challenge to achieving environmental and economic growth and poverty alleviation. The study aims to identify the drivers of deforestation and assess its impact on the livelihoods of the poor and vulnerable communities in the Ashanti region. The study utilized qualitative and space-based data to examine the patterns of vegetation cover and deforestation from 2000 to 2020. The results revealed moderate to sparse vegetation in Ashanti from 2002, 2005, 2011, 2015, 2017, and 2018, with no vegetation in the northcentral part, attributed to climate change, agricultural practices, government policies, and deforestation-related disasters. The study found a significant correlation (R² = 0.8197) between years and deforestation areas, especially in 2018 at around 16,000 Sqkm, indicating an exponential increase with severe implications for sustainable livelihoods. Much of these changes were reflected in 2020 with a high peak of deforestation towards the southeastern parts of the region. Additionally, the results show that the poor groups are not passive actors but are actively involved in identifying systems and processes through which to build their adaptive capacity and resilience to environmental and climate change-induced changes. The findings provide evidence-based and all-inclusive approaches that would encourage vulnerable and marginalized groups to participate in the co-production and co-creation of policies and strategies. This outcome is geared towards transformative and sustainable communities while ensuring efficient and effective response and recovery capacities of deforested lands.