Malawi's 3.6% rate of annual deforestation is among the worst in the world. Wood fuel consumption and agricultural land conversion are the primary causes. This paper examines the historic evidence and develops a conceptual model of deforestation and the response to it, especially by small-holders and the Forestry Department. The model features indigenous stock and growth, as well as reforestation with new seedlings largely delivered by the Forestry Department. The empirical evidence is sparse and of uncertain reliability. Nevertheless, a cautious specification of the model suggests that smallholders are most responsive. They rapidly reforest in response to economic scarcity, especially where their tenure is secure. Continuing smallholder reforestation activity may be highly dependent on Forestry Department capacity to deliver seedlings and extension services. Continuing deforestation in Malawi will be strictly a function of agricultural land conversion. It will not be due to fuel wood or other wood product demands.