In the middle mountains of Uttaranchal of the Indian Central Himalayas, there is a paucity of information about the biophysical rate of recovery when degraded areas are rehabilitated through peoples' participation, and the impact that the recovery has on the livelihoods of the rural communities. This study presents an analysis of change in terms of floral communities and associated change in soil character within an area of land under rehabilitation that was previously used extensively for grazing. Other activities carried out at the site aimed at sustaining the plantation-related activities and promoting similar programmes, include: water harvesting, soil amendment, erosion control measures, nursery development and plantation and biocomposting. The time-series evaluation showed that between 1993 and 1999, the average soil moisture increased from 12.3 to 21.3%, total soil organic carbon from approximately 1.0 to 1.5%, and soil pH from 5.9 to 6.3. The plant species richness increased from 28in 1993 to 54 in 1999. Although the number of C₄-type plants increased from 2 (in 1993) to 10 (in 1999), their Importance Value Index decreased from a value of 149.7 to 137.4 during the same period. The site also recorded a significant increase in grass production from 2.7 t in 1993 to 8.9 t in 1999, which meant increased availability of fodder for the villagers, especially during lean periods, and a reduction in the fodder-related expenditures by approximately IRs 1000³ per household.