Human-wildlife conflict (HWC) poses a significant threat to conservation, particularly in the region, where increasing wildlife populations intersect with dense human communities. This study examines the HWC scenario in one of the protected areas (Parsa National Park) of Terai Arc Landscape, where growing population of large mammals shares the resources in highly populated buffer zone. Analyzing official relief claims from the past five years (2018/19 – 2022/23) as indicators of damage intensity, the study found that elephants were involved in 45% of conflicts, followed by leopards at 29% and tigers at 13.5%. Trend analysis revealed the increasing trend in herbivore-related damage while decreasing trend of carnivore-related conflict, despite the increase in tiger population within the study area. Margina Marginalized communities were frequently affected by these conflicts, and human settlements displayed species-specific hotspots with no overlap, suggesting that species tend to avoid areas occupied by competitors and predators. Financial claims totaled NPR 9.47 million (~USD 80,275; with an average of ~ NPR 2 million per year), predominantly for elephant-related incidents (55%). However, there was significant difference in relief claim amount among trophic groups (F2, 448 = 4.308, p= 0.014). Statistical analysis showed that conflict intensity increased with greater distance from buffer zone forests (β = 0.0962, t = 2.616, p = 0.009) and decreased near water resources (β = -0.094, t = -2.482, p = 0.013). These findings underscore the need for habitat management interventions, such as enhancing water availability within protected areas and maintaining corridors to connect the park’s source populations with sink populations in degraded buffer zone and national forests. Implementing a field-based assessment process for wildlife-related damage could support human-wildlife coexistence in the region.