This article assesses the validity of clamour against Community forestry in regard to the discrimination of the lower caste/1 and economically disadvantaged people in Nepal. Case-studies, using two sets of database on the Forest User Groups (FUGs) of Lalitpur and Kabhrepalanchok districts revealed that the FUGs have benefited from the community forests. The benefit is equally distributed, regardless of wealth and caste, through augmented supply of forest products for farm-household activities. Hence, the paper refutes earlier claims of discrimination in community forestry by caste and economic standing. The paper recommends for the continuation of subsistence oriented Community Forestry Policies in Nepal.