In 2006, a baseline survey for the UNEP/GEF-IAS Project was conducted in BFR to assess the status of IAS in the area. Findings indicated that extensive forest parts had severe S. spectabilis encroachment which appeared to interfere with the normal functioning and productivity of the forest. This study was motivated by the magnitude of S. spectabilis invasion in BFR, the level of public and government concern about the invasion, and the magnitude of the IAS problem across East Africa. This study was thus undertaken to address a specific need of the research and capacity building components of the UNEP/GEF-IAS Project. The study1 was carried out to assess the impacts of S. spectabilis invasion on the productivity of BFR and the socio-economic implications on the livelihoods of the dependent stakeholders (local resident population, timber suppliers and the tourism sector). The study used descriptive statistics to assess the levels of awareness of S. spectabilis invasion, perceptions and knowledge of the conservation values of BFR, knowledge on the benefits and costs of living with S. spectabilis and impacts of S. spectabilis on the flow of quantities and revenues from the benefits it generates. The impact on financial profitability and efficiency of timber firms was assessed using Gross margin analysis (GMA) and financial efficiency ratio analysis respectively. The impact on the population structure of chimpanzees was studied using mean differentials and focused group discussions. Results indicate that the level of awareness about S. spectabilis invasion and the knowledge of the conservation values of BFR were high among all the three stakeholder groups. GMA revealed that S. spectabilis invasion increases variable costs in timber production thus reducing profit margins and financial efficiency of timber firms. Alteration of habitat environment occasioned by S. spectabilis invasion was advanced, though with uncertainty, as a possible reason for the difference in chimpanzee numbers between the infested and non infested forest conditions. Like other IAS, S. spectabilis was found to have both benefits and costs though the distribution of the same differs. S. spectabilis can be considered a net benefit to the local dependent communities whereas it may be a net loss to both the timber and tourism sectors. Conflict of interest in S. spectabilis management is discussed and possible solutions suggested. It was recommended that the threat of invasive species should be tackled through a multisectoral approach.