Summary Iran has a long history of utilizing natural resources, stretching back for about 10 000 years. Early human societies in the country (particularly in western parts) generated major ancient civilizations, based mainly on the use of natural ecosystems. As the population grew, societies became conscious of their natural ecosystems, including forests, and started to explore sustainable and long-term ways of using resources. This led to the development of different natural resource management and forest tenure systems in different areas. Natural resource tenure systems, especially those for forests, have been affected by periodic changes in basic policies and management systems. This case study is part of an FAO study of central Asia. It examines changes in forest tenure, management and institutional arrangements in Iran, and the potential effects of these on sustainable forest management (SFM) and poverty alleviation. After a long period of diversified forest ownership and tenure (e.g., feudalism and forms of private ownership), forest ownership in Iran was transferred to the government following enactment of the Forest Nationalization Law (FNL) in 1963.6 Ownership of major forest areas, such as in northern and western Iran, is disputed/claimed by local communities that still hold traditional forest title deeds. This has created challenges for central government, as the official owner of forests, and local communities, as potential forest user groups. These challenges are reviewed in this case study. Most inland forests are managed and monitored by the government, and the case study reviews the challenges, advantages and weaknesses of this, particularly in relation to local livelihoods. Existing forest tenure types – local forest management cooperatives, private companies and long-standing customary resource management – are discussed and a set of proposals put forward.