Forest management can be implemented for various demands, including biomass or energy production, biodiversity conservation, carbon sequestration, and ecosystem services, all related to forest utilisation and sustainability. However, these demands can conflict, with biomass production potentially hindering biodiversity conservation, and a focus on climate mitigation or ecosystem services possibly limiting wood production. The aim of the present study was to review the literature related to these conflicts and identify best practices for balancing demands in the context of policies and management tools in the European Union (EU). We found that while EU policies promote sustainability, there is insufficient integration between the biodiversity, carbon storage, and biomass production objectives. We additionally found that by integrating datasets and models, such as by interconnecting models for carbon dynamics, biodiversity, and biomass production, predictions and hence workarounds for addressing these competing demands can be more accurate. Based on these findings, we recommend adopting a more holistic approach in forest management strategies, considering both ecological and socio-economic factors for long-term sustainability. This review provides insights for policymakers, forest managers, and other stakeholders, for navigating the trade-offs between different forest ecosystem services, and for supporting informed decision-making in the development of effective forest policies.