This study was designed to determine the contribution of palm craft materials to household income in Western lowland zone of Mwanga district. Data was collected by social economic survey and field inventory. The social economic survey involved interviewing sampled respondents in households, sellers and customers of palm craft materials and products in the market place and discussion with focus groups. Information gathered was type of species, quantity harvested, type of products produced, uses and marketing of palm craft materials and produced products. Field inventory was also conducted to get the estimates of the available palm craft materials in Kileo forest reserve and in general land. Data from social economic survey were analysed by using Statistical Package for Social Sciences (SPSS) computer programme. Field inventory data were analysed using Microsoft Excel computer programme. The study has revealed that palm craft materials have significant contribution (P<0.01) to household income compared to other economic sources in the four villages of Kileo ward. Palm craft materials contributed 56 % of total household income while crops, business and livestock contribute 21 %, 15 % and 8 percent respectively. Market of palm craft products was not good. It was also observed that the amount of palm craft material harvested was lower than what both Kileo forest reserve and in general land could supply. It was recommended that; product development and marketing should be conducted in order to utilize the full potential of the forest reserve and general land, villagers in Kileo ward should be helped to organize themselves into economic groups dealing with plant craft materials, Forest Division should introduce quarter harvesting system of wild date palm in Kileo forest reserve and that Kileo forest reserve and the general land with doum palm should be managed in a sustainable manner through Participatory Forest Management.