This study analyses the factors responsible for effective management and conservation of forest resources in Similipal Tiger Reserve (STR) in India. Both primary and secondary data have been used for analyzing the determinants of forest conservation outcome in 35 sample villages located in and around STR. The result shows that forest growth is positively associated with function of local management institutions, caste homogeneity, and distance to forest department and nearest market. Moreover, it is concluded that efforts at improving forest conservation outcomes should not be confined to the poorest communities, as rich communities are largely responsible for adopting degrading resource use practices. Our result recommends the revival of existing local institutions and promotion of more participatory community management approaches in the STR. Further, in order to reduce trust deficit that exist between fringe villages and the forest department, more usufruct and ownership rights over resource should be transferred to local people, which in turn may enhance better forest conservation outcome.