This paper aims to address the impact of environmental degradation on poverty in Cambodia. It examines the impact of environmental income (forestry and hunting) and that of environmental variables such as flood, drought, and land erosion on poverty. The study also attempts to examine household risk coping strategies and limitations in response to environmental change, as well as the government’s mitigation and coping strategies. The results show that poverty rate will increase by an average of 16.3 percent if rural households are unable to access forestry and hunting at all, of which the headcount ratio in Tonle Sap (wetland) is likely to edge up by 14.1 percent. Drought is likely to increase the poverty rate by 6 percent, while flood decreases it by 4 percent.