The ongoing debate on land and forest rights in the Chittagong Hill Tracts of Bangladesh adds to the growing empirical evidence of the intrinsic linkage between livelihoods, natural resources, and conflicts in mountain areas. The unfortunate history of conflict, its outcome, and the decades of suffering borne by the indigenous people of this region in the Hindu Kush-Himalayas remain largely undocumented. This discussion paper provides a sharp focus on the competing claims on and differentiated interpretations of land and forest rights in the area. The paper provides a historical perspective of the fallout of armed conflict on people and natural resources, and moves to capture the opportunities made available by the peace accord of 1997 and the implications for competing interests related to livelihood-based resources that are manifested in the region in conflicts over land and forest rights. The author concludes that a comprehensive policy related to land and natural resources is imperative to ensure equitable and environmentally sound resource use practices in the Chittagong Hill Tracts.