High-elevation rangelands in Bhutan provide livelihoods for many herding communities. However, severe rangeland degradation in the far eastern region is threatening livestock productivity, biodiversity conservation, and household wellbeing. This paper describes a 3-year community-based rangeland project in eastern Bhutan aimed at restoring and protecting high-elevation rangelands, including wildlife habitats, grasslands, and watersheds, while improving livelihoods. Herder families (120) of the Brokpa ethnic group participated in group management training, savings schemes, pasture improvement, revegetation, and conservation education. Herders restored 35 ha of severely eroded rangeland and sowed 80 ha of improved pasture, and 148 household members invested in savings, with 10 households borrowing funds to diversify income. Households were interviewed before and after the project using semistructured interview guides to determine their perceptions of the project's impacts and limitations. Respondents were satisfied that gully erosion was under control, savings groups were generating income, community cohesion had improved, and awareness of red panda conservation had increased. However, there was ongoing winter fodder shortage, heavy rain damage, and lack of consensus about improving communal pasture areas. We conclude that pastoralists' willingness and ability to restore mountain rangelands will depend on the security of their use rights to graze and manage high-elevation areas. Building trust between mountain communities and agencies and staying committed to long-term social and environmental change are essential for practitioners and policymakers.