The link between biological diversity and the livelihood of a community has always been important and is of great significance in all eras. This study aims to identify different factors that affect the biodiversity of the district Hangu, KP Pakistan. Moreover, it analyzes the role and loss of biodiversity in the district in connection with livelihoods of the local community in 6 selected villages of district Hangu. The study was based on primary data collected through well-structured questionnaire from the owner of privately conserved areas, local residents, farmers, woodcutters, wood sellers, hunters, honey bee keepers, shepherds/cowherds, Jirgah heads and Hakeems/local medical practitioners. Data was analyzed though descriptive statistics, binary logistic and liner regression. Results showed that factors such as deforestation, hunting and climate change affect the availability of birds and plants species negatively while water availability and protected areas had a positive effect on the biodiversity. The use of pesticides on crops was negatively significant with birds‟ visits on crops. Moreover, the livelihood of local community was dependent on biodiversity and the role of institutions and local community in conserving the biodiversity had not been satisfactory and hence need improvement. Supervisor:- Dr. Anwar Hussain