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While the importance of forests for livelihoods has long been well-recognized, empirical knowledge of the factors influencing the extent and diversity of household engagement in the extraction of forest products across different socio-economic groups remains limited. In this paper, we use primary data collected through a household survey of 180 households in a resettled dry forest areas of Northwestern Ethiopia. The paper mainly aims at identifying the main drivers of household behavior regarding collection of main forest products in the context of dry forest environment. A multivariate probit analysis was used to explain variation in household participation in collection of different forest products. The results show that households’ participation in collection of different forest products is significantly determined by a combination of household demographic characteristics, ownership of oxen and of cows, proximity to forest, access to health and school infrastructure, resettlement history and self-reported change in standard of living. The estimation results also suggest households most likely to engage in collection of forest honey, gum, and wood for fuel and other purposes are those located farther from the forest. Policy implications and outlook for further study are discussed in the paper.