Community Forest User Groups (CFUGs) represent one of Nepal's institutionalized conservation endeavors. Established in 1988 through a participatory approach, this initiative aimed to engage local communities in both the production and consumption of forest products. During the 1980s, a heated discussion ensued in Nepal and worldwide regarding the most efficient management of local forests—whether by the state, village communities, or individual proprietors. Government of Nepal entrusted CFUGs with the management of community forests in the Hill and Siwalik regions. While numerous studies have explored the theoretical and conceptual dimensions of community forestry in Nepal, there remains a scarcity of literature addressing their establishment, evolution, and role as contested political spaces. This paper draws upon primary and secondary data sources collected from eastern and central Nepal. Newspaper reporting is also used to provide information for the paper. I have been exploring the forests, institutions and interactions since 1990s. CFUGs exhibit inclusivity, with women and men from diverse social backgrounds actively participating in forest protection efforts. Periodic elections and representation mechanisms outlined in their constitution ensure democratic governance within CFUGs. A significant portion of households in Nepal are organized under Community Forest User Groups (CFUGs). The executive committee serves as the governing body of the CFUG, with all households becoming members of the CFUG by virtue of residence. Looking at the membership and scope at the local level, the political parties would like to elect the executive members of the CFUGs to enhance the party strength at the local level. This paper concludes that CFUG has patterned behavior with its norms and values. Because of its prolonged existence, the political parties would like to capture the space created by the CFUG. As a result of this practice, CFUGs are evolving into elitist spaces rather than domains accessible to the general populace.