The Osun Osogbo Festival is an important cultural heritage event and a well-known tourist attraction with significant social, cultural, and economic importance. This research examines the socio-economic impact of the festival on the local population and community. A concurrent research approach was utilized, combining both quantitative and qualitative data sources. The quantitative data involved distributing structured questionnaires to 189 festival participants using stratified random sampling techniques, as well as surveying 123 hotel operators and 20 taxi drivers. For the qualitative aspect, in-depth interviews were carried out with relevant stakeholders. Quantitative data were analyzed through descriptive statistics (including tables and percentages) and inferential statistics (notably regression analysis). The descriptive analysis revealed that 89.4% support sustainable tourism development, 95.3% are in favor of biodiversity conservation, and 88.9% reported social and community impact. Additionally, the findings indicated that 85% experienced increased sales during the festival. The regression analysis showed a p-value of 0.05, signifying a significant association between community involvement and cultural appreciation. In summary, the Osun Osogbo Festival has had a positive effect on the community. The study suggests that both government and community members should offer financial assistance, capacity-building initiatives, and training programs to help local businesses maximize the economic benefits stemming from the festival.