Forest degradation and deforestation are considered a significant threat to the environment, with a profound impact on global biodiversity, various ecosystem services, and climate stability. Globally, it has become one of the major causes of greenhouse gas emissions (GHG) besides the burning of fossil fuels. Numerous drivers contribute to forest degradation and deforestation, which can be categorized into two groups: proximate causes or direct drivers and underlying causes or indirect drivers. The proximate causes of these issues include agricultural expansion, illegal logging, infrastructure development, urbanization, mining, overgrazing, and uncontrolled forest fires, often exacerbated by demographic, economic, and governance factors, which are the underlying causes of forest degradation and deforestation. Knowledge and understanding of the drivers of forest degradation and deforestation are crucial in the development of effective policies and management practices. These drivers lead to the loss of habitat, loss of carbon sinks, reduction in biological diversity, and soil erosion, which in turn accelerate climate change. To address the challenges of forest degradation and deforestation, a combination of strategies is employed, including forest land restoration, sustainable agriculture, reforestation, and afforestation practices, as well as various conservation incentives and the implementation of participatory management programs. Additionally, effective policies, strict implementation of environmental regulations, and punishment rules, combined with technological innovation, offer an excellent pathway for reducing forest loss and restoring degraded ecosystems.