Deforestation and forest degradation due to unsustainable forest products harvesting and encroachment has adverse socio-ecological impacts in the Southern part of Nepal, the Terai. Urbanization and migration from the hill region is increasing the demand for forest products. Despite the communities' involvement in forest management, the gap between demand and supply of forest products remains huge. In this context, growing trees outside the forests particularly in public and institutional land could be an appropriate strategy both to reduce the pressure on natural forests and bridge the demand and supply gap of forest products. This study assesses how and to what extent Trees Outside Forests addresses these issues. Data were collected through focus group discussion, key informant interview and household survey. The results suggest that Tree Outside Forests have provided access to forest products, improved institutional capacity and increased income of local communities. However, insecure land tenure and unclear legal provisions are drawbacks of growing trees in public lands.