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This study explores the application of the Village Customary Law called Awig-Awig in Tenganan Pegringsingan Village to manage the Ulayat Forest. The myth of Lelipi Lem Bukit is still believed to be a forest guard. A snake will peg the "Niskala" sanction for those who dare to commit theft of forest products. Meanwhile, "Skala" sanctions in the form of "fines" are given to those caught stealing forest products. The legal issue is how is the power of Awig-Awig in utilizing the Ulayat Forest in Tenganan Pegringsingan Village before state law. The method used is empirical legal research with an analytical approach, legislation, and customary law. Observation, Focus Group Discussion, and interviews obtained primary data. Secondary data was collected using documentation and recording techniques and analyzed by interpreting and qualitative techniques from the beginning until the Decree of the Minister of Environment and Forestry of the Republic of Indonesia No. SK.1546/MENLHK-PSKL/PKTH/KUM.1/2/2019 stipulates the Ulayat Forest of Pegringsingan Village as a Customary Forest, the regulation in the management and utilization of forest products is still based on Awig-Awig both as a regulatory and coercive rule. Obedience and observance of villagers are still very high because violations are scarce. Awig-Awig is a law that grows and is developed in the life of villagers in the ulayat village area, which is relevant to Von Savigny's thought, namely volkgeist and has a pliable and supple nature. The customary forest utilization model is relevant to Bentham's utility principle with several novelties.