With a view to gathering experiences on possible ways and means to rehabilitate the red soil (Ratomato) of the midhills of Nepal, a study was conducted at a degraded forest site (Block Number 1 of the Bokse Community Forest, Panchkhal) of Kabhrepalanchok District. The study involved plant community analysis at a regenerating forest site, a plantation site and degraded (disturbed) sites. The physico-chemical parameters of the soils were also analysed to relate them to plant growth. The study indicated that indigenous trees such as Shorea robusta, Schima wallichii, Phyllanthus emblica and Sepium insigne ; shrubs such as Rhus parviflora, Rhus wallichiana, Phoenix sylvestris, Indigofera sp.; and the herb Heteropogon contortus hold potential for planting on degraded Ratomato such as those found in the study site. Participatory Rural Appraisal indicated that the local community are willing to rehabilitate the degraded site if supported. They showed interest in introducing exotic grasses such as Stylosanthus guanensis, Pennisetum sp. that can produce more fodder biomass for their cattle. Agave americana , and bamboo are reported to be the most important species for gully control. Emphasis should be given more on selection of appropriate species preferred by the local community as well as on plantation establishment. Some indigenous as well as exotic species have been recommended for the rehabilitation of the degraded site. The paper includes comments on the optimum processes of rehabilitation of this often badly degraded land type using controlled vegetation succession and management alone.