Kentucky State Forest is a native forest, located in the South Western Slopes region of New South Wales, in eastern Australia. The state forest is located outside the village of Balldale, approximately north-west of Howlong.
Kentucky State Forest is dominated by white cypress pine. Other large tree species present within the forest include grey box and yellow box.
Austral Pillwort, listed as Endangered in New South Wales, has been recorded in the state forest.
At least 15 fauna species listed under the Biodiversity Conservation Act 2016 have been recorded within the state forest. This includes several bird species, such as the brown treecreeper, diamond firetail, flame robin, grey-crowned babbler, hooded robin, scarlet robin, speckled warbler, swift parrot, turquoise parrot and varied sitella.