In its traditional form, shifting cultivation involves a short cultivation phase followed by a long fallow phase, which allows for regeneration of forests. Transition to settled agricultural systems has been at the expense of regenerating fallows, resulting in shortened fallow cycles, a permanent change in landuse and land cover, and a drastic depletion in forest cover. This policy brief examines the impact of transition from shifting cultivation to settled agriculture on forest resources, including forest cover, and sustenance of ecosystem services. It discusses possible solutions to address the issue drawn from community innovations and project experiences in South and Southeast Asia.