Recent global commitments have placed forest and landscape restoration at the forefront of countries' efforts to recover ecosystem services, conserve biodiversity, and mitigate the effects of climate change. However, it needs to be asked if current native tree seedling supply meets an increase in demand for forest restoration? This study assessed the current configuration, distribution, and production capacity of forest nurseries producing native trees in Brazil. Brazil provides an interesting example of how global agreements aligned with national policies can lead to the proliferation of native seedling nurseries, and the challenges faced to restore species‐rich native forest ecosystems. We found that the nurseries in the Atlantic Forest region can still meet an increase in demand—both in terms of seedling quantity and diversity—because most of their production capacity is not currently used. However, not all Brazilian biomes have sufficient nurseries to meet restoration demands, thus there is a risk of using native species from a few biogeographical regions in a much spatially wider and ecologically diverse area. In addition, lack of seed supply and qualified labor can hamper the growth of the market. Barriers to seed supply may also lead to low levels of genetic variability and floristic representation in the populations and ecosystems to be restored. We conclude that restoration of high‐diversity forest ecosystems requires policies and supportive programs, with emphasis on private nurseries, to guarantee adequate supply of native tree seedlings and provide the necessary incentives to develop the emergent economy of forest restoration.