This study investigated an increase in deforestation and its impact in charcoal supply for households in Tanga district (urban). Tanga district was chosen because it has high urban population as compared to her neighbor Districts of Muheza and Mkinga. The district was also chosen because it is so close to natural and reserved forests in both Muheza and Mkinga districts in which effect of deforestation on charcoal supply can be clearly seen and determined. The study involved 61 respondents including (households, charcoal venders and forest officer). Questionnaire survey, interview and documentary review methods were employed in data collection. A quantitative data were analyzed using Statistical Package for Social Sciences (SPSS 20th version). While qualitative information was analyzed using content analysis. The study findings show that majority 56 (92%) of the respondents reported that there is high rate of deforestation which was mainly contributed by charcoal production in the study area. The study further revealed that the observed high rate of deforestation affect the availability and supply of charcoal for domestic use. The scarcity of charcoal coupled with high and fluctuating price give the evidence on presence domestic energy crisis in the study area. Along with other recommendations, the study recommends that the Government Regulator (Energy and Water Utilities Regulatory Authorities - EWURA) should consider reducing tariff on other sources of energy particularly gas and electricity to allow many people afford and resorting to alternative energies for their domestic use and hence reduce the extent of deforestation. JEL: Q23, Q21, R23 Article visualizations