This paper quantifies the contribution of community forest on farm-household income in order to assess the impact on poor-rich gap. The study, conducted on forty-two households of Badikhel Village Development Committee of Lalitpur District in Nepal, revealed that community forestry income contributes 12 and 3% of farm-household income of poor and rich households, respectively. One important finding was that while narrowing poor-rich gap community forestry, within-group inequalities simultaneously increased hence, total inequality remains the same. Strengthening the linkages of poor households with community forest is recommended and emphasizes the need of research to understand the multiplier effects of community forestry on village economy.