This thesis entitled "Impact of community forestry on the livelihood improvement of the rural people" in Shir Khola Prakritik CFGU of Mahottari district with the financial assistance of Churia Watershed Management Project, Sarlahi- Mahottari. This study attempts to assess the participation of rural people, to assess the existing IGAs, to assess the status of physical and natural assets of the UG. 15 % Household sampling was done by using stratified random sampling taking wealth class as a stratum. The research methodology includes review of different literature for secondary data collection and household questionnaire survey, focus group discussion, key informant survey. The data were analyzed using descriptive as well as inferential analysis.

The study has explored that participation of women and dalit in forest protection and plantation is high but low participation in training and IGA. Although participation of women, and dalit is quite satisfactory in meeting but only physical presence. Participation of poor in IGA is very high compared to other users. Goat farming and pig farming are successful existing IGAs and goat farming, vegetable farming, carpentering are potential IGAs.

UG had made many development activities through mobilizing the CF fund. Fodder and fuel wood were the products having high demand from the CF.There was reduction in the collection time for fuel wood and grass. Most of the poor and dalit users weren’t satisfied with the timber distribution system due to high price for timber. EC fixed decision regarding the quantity of the timber required for house construction.

On order to involve women, poor and dalit in CF management, active involvement of them in decision making process should be ensured. Timber should be given on very nominal price to the poor people. More money should be allocated to the community development activities.

The implication of conclusions and recommendation for this study has been expected useful and beneficial for the users, different organizations and the planners in the future as well.