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The study was carried out in the Gaukhureshwor community forests of Kavrepalanchowk district of Nepal. The study focuses at the improvement of rural livelihoods after formation of the community forests. The study analyzed the direct and the indirect benefits derived from the community forests. Major benefits were increased in the supply of fuelwood, leaf-litter, fodder, water supply and other forest products as well as increased in the employment opportunities both regular and seasonal. Above all, significant benefits of the community forests are time saving because daily necessary forest products are easily available nearby settlements from the community forests. So, one does not need to go far for collecting firewood, fodder, leaf-litter and other for daily necessities. In this connection, there was a time saved of 03.625 hours per family per day. This save time can be converted into monetary value which accounts more than twelve thousands Nepalese rupees annually at household level.