Abstract: The biodiversity of Papua New Guinea’s tropical rainforests is utilized by local communities in diverse and often unrecognised ways. Aside from the high commercial value of some rainforest trees, forests provide a number of other goods and services to communities that are more difficult to quantify such as construction, food, medicinal, spiritual, ornamental and recreational values. In addition to being of importance to livelihoods, the forests of PNG are among the worlds most biodiverse, and their valuation, and recognition by local communities, may contribute to their preservation. The research was carried out in two villages (Yagi and Ohu) in Madang province. The relative value of different components of biodiversity for the villagers was estimated according to Pebble Distribution Method. The focus groups attributed the highest value for a category of wild plants in comparison with cultivated plants, wild animals and domestic animals. Interestingly, Ohu focus groups valued wild animals from forest significantly higher than Yagi focus groups. However, there were no significant differences between the opinions of men and women focus groups from Ohu and Yagi. Yagi focus groups named 57 taxa as the most important. They identified Casuarius sp. and Licuala lauterbachii as the taxa used for most use categories. Out of 40 taxa Ohu focus groups identified as the most valuable, 3 species (Pterocarpus indicus, Gnetum gnemon and Intsia bijuga) had a CRI higher than 6%. Some of the species that the focus groups identified as valuable are common, others are threatened. Education of the villagers and development of possibilities to sustain the livelihoods of indigenous people in other ways than consuming the local biodiversity are needed to preserve the valuable species.