In Nepal, community forestry is part of a national strategy for livelihoods improvement and environmental protection. However, analysis of the social, economic and environmental impacts of community forestry is often limited, restricted to a narrow set of benefits (e.g. non-timber forest products) and rarely makes comparisons with alternative land-use options (e.g. agriculture). This study, conducted at Phulchoki Mountain Forest Important Bird and Biodiversity Area (IBA) in the Kathmandu Valley, used methods from the Toolkit for Site-based Ecosystem Service Assessment (TESSA) to compare multiple ecosystem service values (including carbon storage, greenhouse gas sequestration, water provision, water quality, harvested wild goods, cultivated goods and nature-based recreation) provided by the site in its current state and a plausible alternative state in which community forestry had not been implemented. We found that outcomes from community forestry have been favourable for most stakeholders, at most scales, for most services and for important biodiversity at the site. However, not all ecosystem services can be maximised simultaneously, and impacts of land-use decisions on service beneficiaries appear to differ according to socio-economic factors. The policy implications of our findings are discussed in the context of proposals to designate Phulchoki Mountain Forest IBA as part of a Conservation Area.Keywords: beneficiaries; biodiversity conservation; community forestry; equity; livelihoods; participatory management 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Forests are widely recognised as providing benefits not just for the conservation of nature but also for human well-being (Myers, 1997). These benefits, referred to as ecosystem services, are realised at a range of scales, including local-level forest products, regional-level watershed services and global benefits from global climate change mitigation through carbon storage and greenhouse gas sequestration. However, at the local level it is often the case that benefits and costs are not equitably distributed. In Nepal, despite improved forest management and environmental conditions since the introduction of community forests (Baland et al., 2010;Chhetri et al., 2012), some studies suggest that the poorest and the most marginalised members 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 5 of communities, including women, may receive the least benefit (Keshev & Varughese, 2000; Malla et al., 2003;Adhikari, 2005;Ojha et al., 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 ...