This paper principally examines the impact of existing community forestry (CF) legislation, forest policies, and internal CF benefit-sharing practices on the realization of timber rents and their targeted redistribution to poor members of the community forest user groups in the Terai region in Nepal. It also briefly explores other pro-timber rent distribution systems practiced in the Terai and compares them with redistribution through CF. Finally, the paper provides some suggestions on how timber rents realized through CF could be increased and better contribute to poverty alleviation in the Terai region.