The degradation of ecosystems worldwide is a significant environmental concern, with far-reaching consequences. Human-induced habitat destruction and climate change are some of the inherent causes for the loss of habitat and biodiversity. This causes cascading effects on ecosystem functioning, resilience, and services essential for human well-being, such as pollination, water purification, and climate regulation. The degradation of ecosystems not only impacts the local environment but also has broader implications for global biodiversity, climate stability, and human societies. The loss of forests, wetlands, grasslands, and other ecosystems contributes to the depletion of natural resources, loss of carbon sinks, and exacerbation of environmental problems, such as air and water pollution. The decade 2021–2030 is also considered the decade of ecosystem restoration, whose main agenda is to prevent, halt, and reverse the degradation of ecosystems worldwide. Nepal is a pioneer in community forests (CFs) due to its success in the restoration of degraded forest areas. This chapter highlights the restoration efforts conducted by the private sector and CFs in Nepal. These restoration efforts have provided multiple benefits to local communities, such as easy and equitable access to forest produce, better economic conditions through livelihood diversification options, capacity building, and awareness.