This research focused on the interaction between reforestation and livestock production in a sample of households which had been affected by a reforestation project. In particular, the question of whether the increased availability of fodder could encourage families to keep more animals was explored. The sample came from the Nepal Australia Forestry Project (NAFP), a reforestation scheme centred on Chautara Village, Sindhu Palchok District. As well as helping to reforest public land, it encourages families to plant trees on their private land. Terraced farming is practised in the region, the 'pakho' land (unirrigated) terraced into hillsides, and 'khet' land (irrigated) found either in valleys or on the sides of hills near springs. Four communities within a two hour walk of Chautara were identified. These were visited and a list of households owning livestock obtained. 40 families were selected randomly from this list for study. This cross-sectional study found a relationship between two variables likely to be influenced by forestry projects in Nepal and the number of goats and buffaloes kept by households. No relationship between these variables and cattle units could be identified. The results could have serious implications for forest management. If the demand for fodder is higher than anticipated, as implied by the results, more careful or restrictive forest management plans will be necessary.