AbstractThe literature is abound with references to the potential of indigenous and local knowledge (ILK) for sustainable landscape management, but empirical on-the-ground efforts that demonstrate this potential are still lacking. To identify interventions for improving the effectiveness and efficiency of forest restoration, participatory trials were set out in the Indian Himalaya, where per capita degraded land far exceeds per capita cropped/healthy forest land. Treatments were designed based on pooled indigenous and scientific knowledge taking into account farm-forest-livelihood interactions in cultural landscapes. The multipurpose tree-bamboo-medicinal herb mixed restoration plantation reached a state of economic benefit/cost ratio >1 in the eighth year and recovered 30–50% of flowering plant species and carbon stock in intact forest. The communities maintained but did not expand restoration in the absence of policies addressing their genuine needs and aspirations. Transformative change for sustainable restoration would include (1) nesting restoration in participatory, long-term, adaptive and integrated landscape development programmes, (2) formally involving communities in planning, monitoring, bioprospecting, and financial management, (3) assuring long-term funding but limited to the inputs unaffordable for local people, (4) stimulating the inquisitive minds of local people by enriching ILK and cultural heritage, (5) convincing policymakers to provide the scientific rationale behind policy stands, to support the regular interactions of communities with researchers, traders, and industrialists, to commit to genuine payment for ecosystem services in unambiguous terms at multiple spatial (household, village and village cluster) and temporal (short, medium and long-term) scales, and to support long-term participatory action research for development of “landscape restoration models” in varied socio-ecological scenarios.