Forests of high economic value are present mostly in the Terai region of Nepal. Heavy exploitation in the region continues to generate state revenue and to fulfill the increasing demand of forestry products. Despite being put under a protection system since last two decades, Terai forests continued to degrade in area and quality. The data of forest resource inventory collected during the preparation of Operational Forest Management Plans (OFMP) from the eight Terai districts covering an area of 105231 ha were analysed to know the existing forest stand dynamics such as forest type composition and development stages. It was found that the latter was not favourable for sustainable forest management. The highly productive development stages such as pole and middle aged forests contribute small percentages in forest structure composition. The paper argued a need for an immediate action for active forest management.