Oak (Quercus spp.) is an important commercially harvested firewood resource in Bhutan. An oak firewood shortage began in 2000–2009, when demand, spurred by urban domestic and institutional use, began to exceed supply, resulting in overcutting of oak-dominant forest, which affected tree species diversity. This study solicited urban and rural perceptions on oak firewood availability, alternative firewood sources, and whether harvest is consistent with oak conservation, and conducted an assessment of the consequences of commercial oak firewood harvest for species diversity and regeneration. Semistructured interviews and focus group discussions were conducted, and regeneration was sampled on unharvested and commercially harvested oak firewood stands. Urban and rural respondents reported that the oak firewood supply was diminishing. Rural respondents said that oak firewood, leaf litter, fodder, and wood for handles for agricultural implements were abundantly available in the past but that, with the increase in population, these products have become less available, a trend that is likely to continue in the future. Urban respondents overwhelmingly chose electricity as an oak firewood substitute because it was associated with clean energy, improved sanitation, and forest conservation. Electricity should be promoted as an oak firewood substitute in urban homes. Oak as a source of firewood, leaf litter, fodder, and handles for agricultural implements is indispensable for sustaining rural livelihoods, and harvest consistent with conservation needs to be practiced. Tree species diversity and regeneration were not significantly higher in unharvested stands compared to harvested stands, indicating that oak firewood harvest may not have impacted species diversity. The findings support banning commercial harvesting of green oak trees for firewood and promoting electricity as an alternative energy source as the most important oak conservation measures.