Every year between 10,000 and 15,000 tonnes of non-timber forest products (NTFPs) are harvested in Nepal and traded to Indian and overseas markets. The total value of the trade to Nepal's national economy is estimated to be equivalent to US $8.6 million. This paper describes NTFP harvest and trade, the roles of producers, traders, and processors, and the relationships between them. Five potential improvements are discussed from the perspective of harvesters in Nepal: increased production; direct marketing to bypass intermediaries; improved access to market information; improvements to raw material quality; and small-scale processing at the local level. Developments are more likely to benefit harvesters if they act collectively. Collective institutions that focus solely on the production of NTFPs may need to be developed. There are doubts that a single institution would be capable of carrying out several functions, i.e., production, marketing, and processing of NTFPs. The considerable regional variations in the nature of the NTFP trade indicate that suitable institutions, and interventions, would need to be highly location-specific. As a generalization, development efforts may be more suited to the remote western half of Nepal.