There is increasing degradation of non-timber forest products (NTFPs) in the mountains of Nepal. It has been proposed that different components of a common property resource (CPR) do not undergo degradation at the same rate, as they are not managed in the same way under different types of property rights regimes. To examine this, information was collected through a survey of 324 households, community resource assessment ranking and group discussion in a small mountain watershed of Nepal. The study analysed NTFP collection and management practices under government and community forest management systems, and impact of these practices on the status of forest and NTFPs. The analysis based on people's perception revealed that NTFPs were being depleted more rapidly than timber components in both types of forest. The pace of depletion was, however, considerably lower in community forests, as these forests were accessible only to the relevant forest user group members. Depletion of NTFPs was due primarily to the lack of proper institutional arrangements, including the lack of a comprehensive government policy framework, for sustainable use and management of NTFPs.