A field survey was conducted during June-July 2000 in three districts of the Terai region, namely Kanchanpur, Chitwan and Sunsari, in Nepal to determine the preferences of farmers towards tree species suitable for farmland and tree species richness, and to explore the constraints perceived by the farmers in growing tree species in and around their homesteads and the source of forest products and energy use pattern. Formal and informal discussions were also held with tree growing households, knowledgeable persons, and government and nongovernment officials of the three districts. Dalbergia sissoo was the most preferred tree species by farmers followed by Bakaino ( Melia azedarach ), Kadam ( Anthocephalus cadamba [ A. chinensis ]) and Populus spp. Bamboo ( Bambusa/Dendrocalamus spp.) planting was also considered as suitable species for growing on farmland. The species richness was observed higher in Chitwan than the other two districts. Lack of timely technical advice on selection and management of appropriate tree species was found the most serious constraint expressed by the farmers. The energy use pattern in all the three sites was mostly traditional. Government-managed forests together with community forests and trees of farmland were found to be the main source of forest products in the study sites.