This paper focuses on the impact of the armed conflict between Maoist rebels and the Government of Nepal, which took place from 1996 to 2006, on the community forestry sector in Nepal. Four districts (Baglung, Parbat, Myagdi and Palpa) in the hilly region and four in terai (Kailali, Banke, Bardiya and Chitwan) were selected on the basis of scale of Maoists activities, forest resources and accessibility during research. Unstructured interviews with target groups, secondary data, and field visits were performed. Results revealed a serious effect on the community forestry during the conflict. The impact can be negative, positive or both, depending on the conflict's causes, actors involved, geographical location, duration and objectives. The major impact was in their efforts in managing the forests and in the formation of new Community Forest User Groups.