Abstract: This study was conducted to estimate the value of protecting a highland forest located at Peninsular Malaysia to local residents using Contingent Valuation Method. A total of 226 residents from an adjacent small town were randomly selected in a social survey that was carried out from September 2002 to May 2003. Results indicated that the conservation value of the area ranges between RM20 and 27 per individual resident. This study demonstrated an alternative way of measuring the non-market benefits of natural resources, which indeed should be properly considered in decisions affecting these resources.