Production of high value products and services can help reduce poverty in mountain regions. Value chains can be used to describe the activities and benefits involved in bringing such a product from the producer to the market, and analysed to identify improvements along the chain which, if addressed, yield the highest positive outcome for small producers, traders, and processors. This publication presents the results of an action research project on value chains of Indian bay leaf that was designed to increase the benefit gained by the collectors of leaves, mainly poor mountain farmers, in selected villages in Uttarakhand, India, and Udayapur, Nepal. The research integrated the three crosscutting themes of poverty, environment, and gender into the value chain analysis and upgrading. Interventions with the mountain stakeholders led to immediate benefits in terms of increased income, enhanced understanding of environmental values, and increased gender equality. Results show that fair and equitable integration of producers/collectors in value chains can enhance food security, promote resilient livelihoods, and reduce the poverty of mountain people.