In a major deviation from conventional joint forest management approaches where the emphasis of management is on provision of forest products to the participating villagers, the Tamil Nadu Afforestation Project (TAP) focused on poverty alleviation as the principal means to achieve sustainable forest management. This study assesses the effectiveness of TAP's strategy in improving the ecology and socio-economic conditions of forest fringe villages using a diverse set of research methods. Results indicate that in a span of four to seven years, there was significant increase in forest cover, biodiversity, and agricultural productivity. The project villages have also shown considerable progress in various indicators of socio-economic development. The authors, however, suggest continued poverty alleviation and promotion of alternative livelihood opportunities to place the programme on a stable ground. Meeting the development needs of local villagers through strong and durable institutional linkages is also suggested for the programme to sustain and succeed.