Interest in using woody biomass from forestlands for energy production has reemerged in recent years. In Kentucky, bioenergy has great potential to help reduce reliance on fossil fuels. However, questions still remain about economic and other social effects associated with forest-based bioenergy production. This study investigates some of the economic implications of harvesting woody biomass for bioenergy production alongside traditional forest products in Kentucky. Results show that forest-based bioenergy can increase financial return to nonindustrial private forest owners. This study also investigates social impacts and drivers of forest-based bioenergy in Kentucky. Results indicate that a variety of issues will have to be dealt with in order for bioenergy production from forestlands to be viable in Kentucky.