In the densely populated Central Europe, forestry has always had different functions than in Scandinavia or Canada. Today the increasing pressures on the environment and more numerous demands of the people have put emphasis on environmental management and the demands of recreation in forest management practiced in the area. This paper outlines the trends in the utilization of forests in Central Europe, and especially in the Federal Republic of Germany, due to these changing targets. The regulations concerning forestry in Baden-Würtenber, and the forest plan of the Bavarian state forests are used as an example to clarify the principals of forest management and planning.