Abstract: This study is an attempt to develop ecotourism in Nehbandan County, in the South Khorasan Province, Iran, by representing unknown areas that have tourism potential. The most important obstacle in the development of tourism industry is the lack of strong marketing plans, tourism management, accommodations for overnight and long stays, and medical and health clinic in the desert. This is a qualitative, exploratory case study investigating the status of environmental, sociocultural, and economic impacts of ecotourism development on the native people's livelihood in Nehbandan County in Iran. The methodology is based on field observations, secondary data sources, and field survey. It is an interpretive approach that avoids numbers but focuses on issues linked to culture and nature. In the present study, the grounded theory was used to perform data analysis. Based on the findings, ecotourism has undoubtedly proven to be an effective environmental conservation tool in the study site and enables local people to increase their livelihood security through employment in activities relating to ecotourism and the development of rural livelihood.