Increasingly, conservationists and policy makers are in quest of projects directed towards biodiversity conservation. However, impacts of biodiversity conservation projects tend to be more severe in natural resource-dependent communities with limited livelihood options. This article examines the impacts of a biodiversity conservation project - creation of Kakum Conservation Area (KCA) - on livelihoods of rural people in Ghana, in terms of experiences and adaptive capacity of local communities. The article reveals that the impacts of the KCA project on local livelihoods varied according to proximity to the KCA boundary and the type of crops cultivated, as well as the scale of previous dependence on resources in the KCA. The article indicates that the KCA project would benefit by: (i) understanding the socio-cultural and political contexts influencing rural residents; and (ii) providing alternative livelihoods for communities experiencing the impacts of the KCA. Policy implications are further presented.