Bosnia and Herzegovina is the country with the highest share of forests and the largest variety of forest species in the Western Balkans. Due to their natural and diverse structure, as well as extensive natural regeneration, they represent crucial resources for the further development of the economy and society. Forests and forest land in Bosnia and Herzegovina encompass an area of 3,231,500 ha out of which 1,652,400 ha are of high forests and 1,252,200 ha are coppice forests.  The rest of the area includes shrubs, bare land and other woodland. These data point to the fact that about 63% of Bosnia and Herzegovina's territory is covered with forests and forest land, with one of the highest values ​​in Europe; of which around 20% is privately owned and 80% is state-owned (ownership and management of forest resources is within the competence of the Entities: Republic of Srpska and Federation of Bosnia and Herzegovina, which has delegated the managerial competencies to the cantonal governments, and the Brcko District of BiH).

The ratios of high forests and coppice forests are diametrically opposed when comparing public and private ownership. While the state owns 72% of high forests, private forest owners are predominantly found in relation with coppice forest (around 62% of total coppice forests). Public forests comprise most of the high forests, which are more profitable and under systematic forest management. The state manages the better forest sites in the country and uses the opportunity for afforestation and conversion of coppice forests to high forests.

Forest vegetation of Bosnia and Herzegovina is distinguished by the heterogeneity of plant association and the wealth of floristic composition as a result of the historical development of vegetation in the past, specific ecological conditions and anthropogenic impacts.

The forests are characterized by a wide variety of species because the country itself is geographically excellently positioned in terms of diverse climatic influences (Mediterranean, sub Mediterranean and middle continental climate zones) and is home to over one hundred tree species. The main species found are fir, spruce, Scots and European pine, beech, various species of oak, and less significant numbers of noble broadleaves,  including maples, elms, ash, together with fruit trees (cherry, apple, pear).

Forests in the mountainous parts of Bosnia and Herzegovina are characterized by the relative conservation of forest ecosystems, i.e. their naturalness, which is the comparative advantage of Bosnia and Herzegovina. Forest species formingprimeval forests are also represented and they are separated and protected as I category of protection according to IUCN categorization, among which is the largest and most diverse rain forests reserve in Perucica.

Pursuant to Article III of the Constitution of BiH on Responsibilities of and Relations Between the Institutions of Bosnia and Herzegovina and the Entities, foreign trade activities and international obligations in the field of forestry is the responsibility of the institutions of Bosnia and Herzegovina, namely the Ministry of Foreign Trade and Economic Relations of BiH. For the management of forests and forest land, according to the BiH Constitution, the competences are at entity level (FBiH and RS) and Brcko District. Institutions in the two Entities and the Brcko District are responsible for the development and implementation of forestry policies and regulations. In FBiH, these competencies are even more decentralized to the cantonal level. The Constitution of the Federation of Bosnia and Herzegovina in Part III states (Division of Responsibilities between the Federation Government and Cantons) that the Federation (in addition to other responsibilities) has exclusive responsibility for economic policy and land use policy on the federal level, but both levels (Federation and Cantonal Governments) have responsibility for the policy of environment protection and use of natural resources. Where necessary, these responsibilities may be exercised jointly or separately, or by the cantons as coordinated by the Federation Government.

At all administrative-political levels, forestry is the responsibility of ministries for agriculture, water management and forestry (in some cases the Ministry of economy) while wood-processing industries (sawmilling, pulp and paper) in both entities are under the responsibility of ministries for industry, energy and mining.