The present study tries to focus on the scopes and opportunities to enhance lac based livelihood among small and marginal tribal community of the western part of West Bengal. Output oriented DEA-Malmquist Indices have been framed to assess the technical efficiency level of the lac growers followed by resource use efficiency to judge the optimum utilization of limited resource. The study reveals that lac farming has positive and significant bearing upon the economy of the tribal households. Farming contributes significantly to the livelihood of the forest people. Despite variation in technical efficiency across farmers in lac-farming, the capacity generates for sustainable rural employment irrespective of genders is encouraging. There has been much potential for increase in production through good agricultural practices (GAP) with the available natural resources.