Economic represents a dangerous direct and indirect threat to forests, though many people in the world understand that forests are threatened, factors in society sometimes override conservation. Subsistence communities need to find fuel, income, food and on the other hand, industries want to continually grow and to do so they often find these things in the forest. Butterfly farming demonstrates that natural resources can be used profitably in a way that protects the environment as it offers a culturally appropriate use of the land. This study empirically examined the role of butterfly farming on forest conservation; analysis was based on the data from butterfly farmers in six villages around the East Usambara Forest Reserve. Seventy households were selected randomly. Household survey questionnaire and key informant interview were used during data collection. The findings show that farmers had favourable attitudes towards forest conservation and were eager to find solutions to environmental problems. The tangible benefits farmers received helped them investing in education, assets and other necessities such as being able to access healthy services. Butterfly farming contributes about 44% to household income, however, markets, diseases and predators pose threat to the development of the activity. Unlike most other types of agriculture which are dependent upon cleared forest for planting crops or grazing cattle, butterfly farming requires intact forest thus promoting forest conservation in the area. Detailed research is recommended on the role of other factors in forest conservation and/or impact of butterfly farming to the butterfly wild populations.