The importance of non-timber forest products (NTFPs) has been increasingly recognized because of their commercial, socioeconomic and ecological values. However, very little research have been done on the biological, commercial, socioeconomic and institutional aspects of NTFPs in Nepal. This is mainly because NTFPs are extracted from wild by individuals, and traded through multiple actors and market channels within a confusing policy environment. The present paper attempts to explore the policy issues related to the management and promotion of NTFPs.