Portuguese forests have always played an essential role in the socioeconomic development of national rural areas, but also in several forest-based industrial sectors, such as the cork, pulp and paper, and wood panels industries. In addition to these dominant sectors, there are also several other uses for forest timber, such as being the major raw materials to the production of furniture or devoted to the growing biomass pellets production industry. This review article presents the evolution of the forest industrial sector throughout the recent past, and its impact on the development of the rural environment, from a socioeconomic perspective, namely concerning the jobs and value-added creation, as well as the importance of the forest in national industrial development. It shows the importance of sustainable forest management for the development of the rural environment, as an essential sector for the creation of wealth and for the establishment of populations in the interior regions of the country.