The sustainability of ecotourism is the backbone of tourism development of a country. Ecotourism can contribute to both conservation and development in which involves dynamic relationship between tourism, biodiversity and communities, facilitate by great management. The purpose of this study is to analyze the dimensions of the socio-economic and environmental impacts of ecotourism in communities surrounding the Tasik Kenyir in Terengganu, Malaysia. This study provides a framework for the development and evaluation of ecotourism. The framework will determine if the relationships between indicators are positively correlated which will result in positive contribution to the other by using System Dynamic. Socio-cultural and economic data will be collected through interviews and group discussions in selected communities in Tasik Kenyir. Data on wildlife will be extracted from secondary data from Kenyir Research Institute, Universiti Malaysia Terengganu. The data analysis will explore the socio-cultural and economic differences between and within different communities due to ecotourism development, the contribution of ecotourism to conservation activities, local support for conservation and ecotourism as well as the influence of tourist activities on the distribution of wildlife species in Tasik Kenyir. This study aims to contribute toward understanding the natural resource community-ecotourism inter-relationship and help to bridge the knowledge gap that hinders biodiversity conservation initiatives. The findings will be used as a base for further development of ecotourism and will recommend alternative management options where necessary for the study area.