Rattan is one of the most important non-timber forest products mostly distributed and highly traded in Southeast Asia. Out of 600 species in the world, only seven species occur in Nepal, but these play a significant role in the income generation of communities. However, rattan resource base has been depleted significantly due to overexploitation, immature harvesting and habitat destruction. This paper highlights a case study of community rattan management in the far western development Terai region of Nepal. The income of the community has been increased up to 30 times after the proper management of rattan. Since 1996 the community has earned about US$ 40 000 each year from the rattan sale and a number of community development activities has been carried out with the funds generated. This is an exemplary work to demonstrate how rattan management can bring positive changes on rural economy, natural resources and social capital.
