In the dry deciduous forests of central India, NTFPs are the major source of livelihood and income generation to local people. In the study area, due to the extremely dry climate and the erratic nature of rainfall, only about 20% of people undertake rainfed agriculture with the result that forests are under tremendous pressure from cattle grazing and fire. Unsustainable harvesting and collection of NTFPs has reduced their availability in the natural forest, which is threatening the livelihood of the tribal collectors. This paper is an outcome of three years of action research implemented with the local community at Sheopur District of Madhya Pradesh. Community awareness generation, science and technology application for NTFP processing and value addition and capacity building were the key approaches for rural livelihood and income generation. The case study emphasises the activities required for sustainable NTFP management.