Deforestation has a significant impact on the environment in various ways. It leads to habitat loss and destruction, which can result in the extinction of plant and animal species. Deforestation also contributes to climate change by reducing the number of trees available to absorb carbon dioxide from the atmosphere. Additionally, it can lead to soil erosion, disruption of water cycles, and loss of biodiversity. Overall, deforestation has detrimental effects on the environment's health and stability.