Cattle grazing, although widely practiced in Himalayan conifer forests, is perceived to be harmful to the environment. The present article summarizes experiences in Bhutan where grazing in the forest remains the single, most important source of cattle fodder. The ongoing debate about the effect of cattle grazing is often based on speculation and driven by conflicting interests. With a few exceptions, descriptive observations consider grazing as harmful to the forest and the environment. Quantitative observations, however, do not support these assertions. Removal of herbaceous biomass by grazing enhances regeneration of conifer species and reduces damage done by small rodents. Grazing, however, diminishes the number and the density of broadleaved species. Through livestock grazing, plant nutrients are transferred from the forest to the agricultural systems. This may result in a gradual decline in the fertility of forest soils. The nutrients, especially P, are of utmost importance to agricultural production on marginal mountain soils. Silvopastoral systems combining dairy and timber production with coniferous species offer promising opportunities for many temperate regions of Bhutan. When assessing the opportunities and the problems of forest grazing, it will be important to consider sociocultural aspects and to include the opinions of farmers and herders in the debate.