The Sundarban provides various types of resources for an estimated four million people living in and around this mangrove forest in its Bangladesh parts. This study was carried out to quantify the value of forest income in these communities with the aim of understanding the contribution and importance of forest resources to the livelihoods of the poor, and their possible role in poverty alleviation. Eight key different resources such as fish, shrimp fry, crab, fuel-wood, wood for the construction of house and boat, thatching materials, honey and wax were identified in this study and their economic value estimated at US$145.2 million/year. It was also revealed that the households depended on mangrove resources for their livelihoods, with the lower and the middle-income households being heavily dependent. The households belonging to the lowest income group had neither land nor agricultural or livestock resources for generating income, therefore, a greater proportion of their income came from the forest, making them highly dependent on forest resources for survival. Given a population of about 4 million people residing in 17 upazilas (sub-districts) close to the Sundarban Reserve Forest, and their higher dependence on forest resources, sustainable management of the common pool resources provided by the forest is essential for alleviating extreme poverty. Management regimes for the Sundarban Reserve Forest need to be ensured continued access of the local residents to forest resources, especially of those who are the poorest, for sustaining livelihoods. In this regard, co-management of resources could be a pro-poor strategy if it does not compromise the livelihoods of the poorest living in and around the Sundarban.