The non-timber forest products (NTFPs) sector in Nepal is being promoted with the concept of sustainable management as articulated by the Convention on Biological Diversity. To promote and regulate this sector, Nepal adopted the Herbs and NTFP Development Policy in 2004. The goal of this thesis was to assess the effectiveness of this policy along with other forestry and natural resource policies in Nepal concerning the conservation and sustainable use of NTFPs. I conducted open-ended semi-structured interviews with 28 key informants in summer 2006 in Nepal where I also collected relevant documents and publications. I did qualitative analysis of data obtained from interviews and document review. The research found many important issues that need to be addressed to promote the NTFP sector as envisioned by the Government of Nepal. The findings of this research will help to further implement the policy and promote the NTFP sector through sustainable management practices.