Despite the popularity of integrated conservation and development approaches to protected area management, adjacent communities increasingly face livelihood dilemmas. Yet understanding of how market processes and conservation enforcement interact to influence livelihood responses remains limited. Targeting eight villages in Nam Et-Phou Louey (NEPL) National Park in northern Lao PDR, we draw on survey data with 255 households, 93 semi-structured interviews, and meso-level data on village conditions to examine how residents navigate associated livelihood dilemmas. A cluster analysis reveals five livelihood types with divergent capacities to engage in market development and cope with enforcement pressures. We show how market linkages, historical conservation interventions, and local access conditions shape livelihoods and differences between villages. Our approach yields a nuanced picture of how global conservation efforts result in an uneven distribution of costs and benefits at local scales. Conservation measures must account for highly divergent capacities to cope with access loss and diversify livelihoods.