This paper examines the contribution of the Nepalese Community Forestry in the social change process in two central hills districts of Nepal. Analysis of data indicates improvement in forest management, decision making, representation of the poor and women in forest management and utilization, and awareness on the economic and ecological contributions of forests. Debates and discussions have increased as regards to the roles and responsibilities of users, as well as the mechanisms for gender- sensitive, poverty-focused and equity-based forest management activities. All these factors are contributing to achieve the sustainable management of forest resources, to improve the living conditions of the people and to promote non-coercive social transformation.