While the Government of Nepal has set the goal of achieving prosperity from forestry, the country holding 44.74% of forest area demonstrates the prospects of forest based enterprises. Along with the ambition, there are a range of challenges that have been rather discouraged in promoting community-based forest enterprises in Nepal. Community institutions are facing several challenges in the establishment and operation of forest-based enterprises. With the aim to discuss opportunities and challenges in promoting forest-based enterprises and laying out ways forward, ForestAction Nepal, in support from the Australian Government, organized a policy dialogue on “Community institutions and forest-based enterprises: Prospects of transformation” on 6th June 2023. A diverse group of actors from the government, non-government, civil society, private sector, local government among others expressed their views during the event.