Forest management which is more inclusive of the interests of local people has been one of the central foci of forestry globally for the past 25 years. Countries in which there is a strong dependency between people and forests, such as Nepal, have been at the forefront of this more participatory forest management, which is closely associated with devolution of State authority over forests. The participatory management paradigm recognises both the potential of local people and the limits of central government for sustainable forest management. A second generation of participatory forest management is now emerging, drawing on the diverse experiences and mixed outcomes of the first generation; increasingly, it recognises the need for synergistic collaboration between different interests if participatory modes of forest management are to deliver the outcomes sought by different interests. While there has been strong public participation in Australian forest policy for the past 25 years, and while Australian foresters have often been at the forefront of participatory forestry initiatives abroad, it is only very recently that forms of participatory forest management have been introduced to Australia. As elsewhere, participatory forest management has the potential to better satisfy community aspirations and needs of forests, but - like other modes of sustainable forest management - its success requires an enabling policy framework, substantial interdisciplinary inputs, very functional collaboration between different interests, and long- term political and resource commitment.