This study monitors the forest ecology in Himchari National Park, Teknaf Wildlife Sanctuary, and between the areas in Cox's Bazar district, Bangladesh. The area has a rich biodiversity, including globally endangered species such as Asian Elephants (Elephas maximus) and Boilam Trees (Anisoptera scaphula), which are threatened by anthropogenic development, newly refugees’ unplanned settlements and their use of domestic energy. Geographic Information System (GIS) and Landsat satellite images are used to monitor forest coverage for 1995–2018. The Normalized Difference Vegetation Index (NDVI) is applied to quantify forest area. Focus group discussions and questionnaire surveys were conducted to reveal stakeholder perceptions about their dependency on forest resources as ecosystem services. Close to the refugee camp areas, the forest coverage changes to grassland due to the unsustainable forest resource extraction. Despite the free of charge supply of Liquefied Petroleum Gas, the refugees burn 2,380 metric tons of firewood every month to satisfy energy for cooking. Besides, 200,000 households frequently use bamboo, small trees, and shrubs to maintain their dwellings' structure. Thus, deforestation caused by immigration between 2017–2018 is similar to that caused by the effect of climate change, including severe tropical cyclones in 1994–1995. This research identifies domestic energy supply deficiency and impacts, and the need for comparatively durable housing materials to reduce stress on forest resources and health hazards.