Community Forestry (CF) Program of Nepal is the most successful common property resource management strategy which is well documented and replicable around the world. The introduction of community forestry in Nepal represents an attempt to decentralize control and instill democratic reform in the management of forest resources through the direct involvement of individuals in decision making and benefit sharing. While community forestry offers tremendous potential to practice selfgovernance, the behavior of individuals based on complex informal institutional arrangements, such as caste and gender, must be accounted for in such formalized policy initiatives. It has been argued that social exclusion is the major obstacle which misappropriates the forest resources and its institutions that marginalized the livelihoods of the target groups. Based on the secondary information, in this report, structural and institutional exclusion in decision making, social exclusion and benefit sharing, has been presented