Growing evidence suggests a nuanced link between diversification and well-being for forest communities. We contribute to clarify this nuance, by analyzing the well-being outcomes linked to forest and non-forest diversification choices, through a systematic sample of 200 households around the Kilum-Ijim Forest Landscape (KIFL) of Cameroon. A composite household well-being index based on the Human Development Index approach, and the ordinary least square were used to estimate the effect of livelihood diversification on well-being. However, we first identified the determinants of livelihood diversification choices using the logit model. The results show that most households (84%) rely on forest-dependent livelihood activities, with varying consequences on conservation. High return diversification activities are important for household well-being. If not well managed, promoting forest-dependent activities may potentially threaten conservation. This can be mitigated by revising Cameroon’s forest policy to reduce forest-dependent diversification, promote NTFP domestication, and establish mutually-agreed forest use quotas for communities.