China is experiencing forest transition with its a ssociated environmental and geopolitical impacts. This paper examines forest tr ansition with empirical evidences experienced over the last half century at five sites in Yunnan Province of Southwest China. Results suggest that the forest transitions in Yunnan were mainly driven by economic growth that created off-farm opportunities. It was also supported by state polic ies favourable for environmental conservation that secured tenure and provided technical assistance an d financial compensation. The forest transition in China contributes to global carbon sequestration , biodiversity conservation and in improving local and regional environment. The forest transition was also useful in understanding people and land interactions in the coupled human-environment syste ms in Yunnan of the eastern Himalayas; this also provided potential policy understandings for r egional application specifically when it comes to environmental conservation and economic development .
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