ICIMOD's People and Resource Dynamics in Mountain Watersheds of the Hindu Kush-Himalayas Project (PARDYP), funded by SDC, IDRC, and ICIMOD, has been carrying out research in middle mountain watersheds since 1996, focussing on natural resource degradation and community and farm-based options to promote rehabilitation of degraded lands and increase in on-farm productivity. This publication is a compilation of the papers presented at a wrap-up workshop for Phase 2 of the project in December 2003. It assembles the results of three years of research in the five bench mark watersheds by the country teams in China, India, Pakistan, and Nepal, together with some innovative work by others. The papers identify common watershed management issues, especially land use intensification and soil nutrient deficiencies; drinking and irrigation water shortages; and water quality problems. Soil erosion and forest degradation were found to be less significant than previously thought. Although agricultural productivity is still a significant issue, many opportunities were shown for increasing farm productivity using a proper mix of simple technologies and institutional linkages. These proceedings should serve as a valuable resource for researchers, development workers, policy makers, and students of natural resource management working in the Himalayan region.