This paper covers 20 years of a forestry aid project in Sagarmatha (Everest) National Park (SNP), Nepal. The project is funded by New Zealand's Himalayan Trust and the Sir Edmund Hillary Foundation of Canada. The objective is to promote management by the local people of the forests and shrublands of the SNP area, to provide stable soils, desirbale habitats for fauna and flora, and sustainable production of the forest products essential for the long-term survival of local communities. The forests have traditionally supplied fuel wood and building timber, as well as litter for mixing with animal and human wastes to provide the basic fertiliser for staple crop production. The use of forest products is under pressure, mainly due to tourists/trekkers, the numbers of which have increased from 7000 in 1989 to 20,000 + since 2000. Normal forest managment for human use is restricted by the conservation criteria applied to a National Park. The forestry project employs six local people, mainly to manage three nurseries producting 60-70,000 seedlings (mostly blue pine, Pinus wallichiana, and silver fir, Abies spectabilis) for annual outplanting. SNP staff and village community groups determine the most appropriate places to plant seedlings. Careful siting without fencing has led to lower establishment costs, minimal animal damage and a more natural appearance. To date, nearly 200 ha have been planted. As suitable sites for afforestation become more limited, attention in the nurseries is shifting away from tree seedling production. The competition for trekker attention means that there is a growing demand for other plant products, such as vegetables and flowers. In addition, there is interest in pruchasing seed of native plants, which can be specifically grown for such sales. Eventually, it is hoped that this will lead to the programme being more demand-driven and hence, self-supporting. Other focal points of the project are the monitoring of existing forest growth and forest influences, such as the native Himalayan thar and the advent of hydro-electricity. Growth studies indicate that the forests could be managed for sustainable production of basic forest products, without negatively affecting prime conservation values. But for this to happen, a change in the SNP's management philosophy is required. Excessive numbes of thar could be adversely affecting forest regrowth. The recent availablity of electricity may have reduced fuel-wood consumption by 33 %. In the future, attainment of long-term, sustainably managed forests will depend on better education and awareness programmes utilising existing knowledge (rather than new technical innovations), plus operational guidance and coordination by capable and credible on-site management.