<p>The primary aim of community-managed forests in protected areas is to reconcile biodiversity conservation with local livelihoods; however, their capacity to meet subsistence needs remains poorly understood. This study evaluates 10 Buffer Zone Community Forests (BZCFs) in Bardia National Park’s Buffer Zone, which is predominantly inhabited by the resource-dependent indigenous <i>Tharu</i> population (61%) and hosts the country’s highest concentration of BZCFs. Using a mixed-methods approach, data were collected from 531 households stratified into poor (<i>n</i> = 294), medium (<i>n</i> = 193), and wealthy (<i>n</i> = 44) groups, supplemented by operational plans, harvesting permits, distribution records, key informant interviews and field verification. Household-level demand for fuelwood, timber, fodder and other forest products was compared with approved and actual supply to identify gaps and socio-economic disparities. Across the 10 BZCFs studied, only 55% of fuelwood, 85% of timber, and 72% of fodder demand were met on average, with poorer households receiving a disproportionately lower share despite formal equality of rights. Institutional constraints, including conservative harvesting approvals, short collection periods, and limited local discretion, appear to contribute more to these shortfalls than ecological scarcity alone. The findings demonstrate that formal equality in forest access does not guarantee equitable outcomes under constrained supply, highlighting the critical role of governance arrangements in shaping livelihood benefits. By integrating household demand, institutional rules, and actual supply, this study contributes to global debates on balancing the livelihoods of local communities through equitable benefit-sharing while advancing commitments under the Kunming-Montreal Biodiversity Framework (30 × 30) and conservation mandates worldwide.</p>