The study on economic valuation of Non Timber Forest Products (NTFPs) and its implication for adaptation to climate change was conducted in four villages surrounding Iyondo Forest Reserve (IFR). The study specifically aimed at identifying and quantifying NTFPs for subsistence use and trade, examining factors influencing supply and demand of NTFPs, examining the total economic value of NTFPs and determining profit margin between different actors along the NTFPs market value chain. Data were collected through PRA techniques, household and market surveys. Analysis of data through descriptive and inferential statistics was done using the Statistical Package for Social Sciences (SPSS) and Ms Excel software tools. 14 NTFPs were identified including firewood, mushrooms, wild fruits, herbal medicines and honey which were used for trade by local communities surrounding IFR for their livelihoods and during adverse climatic conditions. The results at p<0.05 showed that household income, household size and distance influenced supply of NTFPs, probably because of their increasing vulnerability to economic shocks due to climate variability. Other factors that constrained supply were existing tenure system, occasional floods, drought, scarcity, fire and seasonality. Demand for NTFPs was influenced by household size and marital status. The total economic value of NTFPs at a discount rate of 10% was TZS 20 523 473 790 indicating the contribution of NTFPs for rural livelihood in the changing climate which also influences adaptive capacity. High profit margin along the NTFPs actors was found to benefit collectors of charcoal and honey followed by retailers selling firewood. Beverage traders accrued high profit than other actors because of value addition. The recommendations were to improve futureiii availability of NTFPs, by sensitizing communities to practice agroforestry and establish community woodlots, to encourage local communities, to engage in alternative income generating activities such as beekeeping in order to improve their income and to meet the needs of their big household size, to promote preservation and value addition of products in order to ensure benefits to various actors along the market value chain and sustainability of products. Also, economic valuation for other forest services from IFR including carbon sequestration under the changing climate condition should be conducted so as to capture the full value of the IFR.Climate Change Impacts, Adaptation and Mitigation Programme (CCIAM)