This paper considers the critical role of local markets in sustaining rural communities and forests through the trade of Boswellia serrata Roxb. gum-resin as a culturally significant non-timber forest product (NTFP). Despite its cultural significance in Hindu rituals, little is known about the market dynamics at the consumer end of the value chain. This is one of the first detailed studies on consumer behavior and seller economics of B. serrata gum-resin in temple contexts. Open-ended surveys with sellers and consumers reflect seller activities, incomes, and consumer perceptions within the markets, providing insights into the dynamics of the gum-resin value chain and the implications for sustainability. Challenges gum-resin sellers face are brought to light, with a notable struggle to secure a significant portion of the final product’s value. Consumer perceptions are identified as a pivotal aspect influencing this NTFP’s market dynamics. The study emphasizes the importance of understanding consumer demand and preferences in shaping market size and sustainability practices. The research advocates for establishing structured markets to enhance returns for harvesters and reduce costs for consumers. In providing insights into the socio-economic aspects of temple markets for B. serrata gum-resin, this study contributes to the understanding of NTFP value chains and their broader impact on the sustainability of forest-dwelling communities and forest ecosystems. The findings underscore the need for informed interventions and policy measures to address challenges, promote equitable practices, and ensure the long-term viability of NTFP-based economies.