This study aimed at investigating the effects of implementation of Livestock Removal from Forest (LRF) Plan in Siahdarreh village in Nahavand County of Iran. The qualitative research was conducted using grounded theory method. The required data were collected by semi-participatory observation and semi-structured interviews in the form of focused group discussion. The statistical population included household heads in the studied village. The sampling was done in a purposeful manner, advancing until the theoretical saturation of data. The validity of questionnaire was confirmed through the key notes raised in the interviews, two-way interaction with the interviewees and triangulation, and its reliability was confirmed through the strategy of "participant feedback". Data analysis was conducted through extraction, sorting, classification and general concepts within the grounded theory method. According to the results, the effects of LRF were classified in six categories, including: 1) weakening and stagnation of livestock activities, 2) positive and negative effects on the financial status of rural people, 3) the emergence of social problems in the village, 4) demoralized rural participation in conserving forests and pastures, 5) lack of commitment of governmental organizations to obligations of the plan, and 6) the psychological adverse effects. To reduce the plan problems, some suggestions such as a comprehensive planning for organized livestock and government efforts to implement the promises made to foresters were presented.