Stakeholders play role and interact at multiple levels – from local to global level and their role and interaction determine the effectiveness of a development intervention. Therefore, analysis and exploration of stakeholder interaction, their role in decision making process according to their relative position and power relations is obligatory for the success of any extension project. This piece of research reports the findings of a research project conducted in the forest rich districts viz. Mansehra, Abotabad and Haripur in North West Frontier Province (NWFP) of Pakistan. The main objective of the study is to identify the interaction among main stakeholders at the local level – and analyse their extent of participation in decision-making in the context of three forest related extension projects. Beneficiaries (local communities) of three randomly selected forest related project’s areas served as the respondents of the study. The quantitative data were collected through a structured interview schedule while qualitative data were collected though focus group discussions and key informant interviews. Poor interaction between forest department and local communities was perceived due to supremacy of forest department in decision-making regarding forest management at local level. It was recommended that implementing agencies should involve local communities simultaneously in decision-making and implementation process, local communities should work with implementing agencies to accelerate project activities and donor agencies should develop consensus among involved stakeholders before project’s implementation.
