Particularly Vulnerable Tribal Groups (PVTGs) of India have been the custodians of forest ecosystems and are dependent on natural resources for their cultural, spiritual and economic sustenance. However, the imposition of modern development projects and the prevalent restrictive legal framework has disrupted their traditional lifestyle. This research paper examines the intersection of forest dependency, the existing legal framework and modern developmental projects thus highlighting its impact and influence on the survival and cultural identity of PVTGs. Developmental projects, like the Great Nicobar Project, have often prioritised the industrial and urban growth over the needs of the indigenous population, drawing significant criticism from environmental activists. Additionally, laws like the Indian Forest Act, 1927, and the Forest Conservation Act, 1980 have centralised the control of forest to the government, often criminalising traditional practices. While Forest Rights Act, 2006 was enacted to address these historical injustices, its implementation is riddled with inconsistencies and delays. This study employs doctrinal methodology relying upon secondary resources to analyse the effects of modernisation and forest laws on PVTGs. It also takes into account the case studies to substantiate how these developments disrupt their livelihood. International perspectives are incorporated to identify the best practices for safeguarding the indigenous rights. The findings of this research reveal the influence of modern developmental projects in changing the forest dependency attitude of the PVTGs. Further exploration of the legal framework aiming to protect tribal right reveals significant challenges and backlashes in its practical implementation. This study contributes to the field of tribal rights and sustainable development recommending inclusive policy reforms which ensure the protection of rights and traditions in development. By addressing these issues, the research underscores a balanced approach, thus aligning economic development with legal framework and preservation of tribal heritage.