Most people mainly disadvantaged or lower-middle-income nations reside in the countryside. A resilient community is largely dependent on the physical growth of remote regions. This study aims to assess the catalyst effects of natural hazards like erosion on landscape degradation in rural communities. With a focus on the threat to biodiversity and well-being as it affects the people of Okitipupa, a rural community in Nigeria. To evaluate and handle environmental issues, the Driving Forces-Pressures-State-Impacts-Responses (DPSIR) framework is employed. The socio-economic and socio-cultural factors that propel human activity and either exacerbate or lessen environmental constraints are known as driving forces. A qualitative approach was deployed for this study using a geospatial analysis of the study area within a 1.5x1.5KM sample frame where there is a major gully erosion. The spot heights were taken to generate the soil elevation, the landforms, and the hydrology. There are not many researches that look at how biodiversity or natural resource management techniques and concepts affect mental health in the countryside and rural settlements. There is evidence that extreme weather events or climate have a detrimental effect on mental health, and well-being in rural places. The sustainable landscape design approaches are important due to the heterogeneous and predominant nature of the climate, socio-economy, and landscapes of the rural settlements. This understanding, which addresses the effects on the psychological wellness of the most disadvantaged individuals, can enhance government attempts towards comprehensive management and environmentally conscious preparedness to curb or prevent future reoccurrence. Plain Language Summary On the other hand, the preservation of the environment is being threatened by the existing methods of rural development, which puts the long-term viability of rural areas in greater danger. To create a sustainable environment in rural areas—one that supports both natural processes and rural production and living activities—multiple stakeholders must work together over an extended period.