This paper considers non-wood forest products (NWFPs) as potential sources of income for marginal mountain farmers. Results of a field survey conducted in Galaudokhola watershed, Nepal, are presented. The study revealed that ethnic groups like the Chepangs and Tamangs who live mainly at higher elevations have benefited significantly by selling NWFPs produced on their marginal lands that are not suitable for cultivation of cereal crops. However, the intensity of NWFP production and the amount of income derived depend on the household size in general, and the number of women in particular.