The long-term success of Joint Forest Management (JFM) appears doubtful unless people's dependence on forests is reduced to non-timber forest produce, small timber, firewood for bonafide domestic use and indirect benefits. For this the issues of poverty alleviation, sustainable development, empowerment and forest regeneration have to be dealt with simultaneously. While elucidating the concept and approach of Sustainable Livelihoods (SL), this paper makes a case for its adoption in forest areas. Further it analyses the Tamilnadu Afforestation Project and its evolution into a Sustainable Livelihood Project. The paper concludes with the observation that JFM projects can be converted into SL projects through enhanced outlay for buffer zones, integration of line departments, increasing the duration and decentralisation of more powers to JFM institutions.