Results of the study shows that the methods of conserving forest resource conservation of Lisu Khun Jae village is the management of the forest as village conservation forest. One part of the forest was declared as a sacred ground under the tradition and belief of the village that the forest established as an A-pa-moo shrine or permanent spirit house is considered a holy ground protected by the spirits. Another part of the forest serves as water resource of the village and established as a conservation forest with the rules and regulations strictly implemented for the area. A village committee is also set up to supervise this section of the forest. There are 2 factors affecting the forest resource conservation of Lisu Khun Jae village: internal community factors and external community factors. The internal community factors are traditional culture relationship, belief and the role of community leaders. The external community factors are supports from governmental an non-governmental organizations.