Forest products play an important role in supporting rural livelihoods and food security in many developing countries. This paper uses statistical analysis to examine the role of non-timber forest products (NTFPs) in rural household welfare in Zambia, with two main objectives. Using rural household survey data, we estimate the share of NTFP income to total household income with the aim of assessing the proportion and distribution of business activities related to NTFPs. We estimate the determinants of rural household participation in the extraction and trade of NTFPs, with an interest in the characteristics of households that are more dependent on forest products for income. Results show that among NTFPs, charcoal/firewood is the most common source of income, with 65% of households engaged in NTFP business activities having reported income from charcoal/firewood production or sale. The results showed that the wealthiest (top 25%) households earned about 10 times more income in absolute terms from NTFPs than the poorest (bottom 25%). The results indicated that an increase in age and education level reduces the likelihood of a household to participate in NTFPs and level of NTFPs’ contribution to household income. Another finding is that an increase in population density is associated with higher likelihood to participate in NTFPs, presumably due to increased market for NTFPs as well as for settlement purposes. It is important that poverty alleviation strategies recognize the extent of household participation in NTFP business activities and the important contribution of NTFPs to overall household welfare and income diversification.