This research looks at some issues confronting community forestry in Nepal. Analytic Hierarchy Process (AHP) was used to analyze the issues confronting community forestry in mid hills region of Nepal. Results indicate that experts as well as local community users think positive aspects of community forestry to be more important than its negative aspects. In addition, through the comparison of three forest types, Alnus nepalensis found to be the most important forest type for conservation and Schima-Castanopsis to be the most important forest type for local benefits. Similarly, results also indicate that increase in carbon prices lengthen an optimal rotation age. Also, Land Expectation Value (LEV) increases substantially with the increase in carbon prices.