The establishment of protected areas as a strategy for biodiversity conservation implies the need for sustainable alternative livelihoods of rural, forest-dependent communities. This article contributes to the discourse on balancing environmental conservation and economic well-being by examining state-initiated livelihood projects in Mount Hamiguitan Range Wildlife Sanctuary (MHRWS), Philippines, a UNESCO World Heritage Site. As the literature emphasizes on impacts of livelihoods on communities, it is also important to deal on the dynamics in the conceptualization and implementation of these livelihoods from the perspectives and experiences of implementers and beneficiaries, to possibly ensure sustainability. The data from in-depth interviews with implementers and survey among partner beneficiaries, revealed that strategies like conceptualizing projects with defined principles and purpose, engaging and understanding the community, implementing adaptive and responsive strategies, providing sustained marketing and technical support, and establishing partnerships with agencies, serve as facilitating factors for these livelihoods. However, these projects are challenged by lack of sustainability plan, of coordinated governance, and of sufficient, full-time, and tenured personnel. Hence, while state-initiated livelihood projects could be sustainable given its (state’s) mandate and resources, there are also impediments due to some structural inadequacies.