This paper examines the impact of Community-Based Natural Resource Management (CBNRM) in Ngamiland over the past ten years. It shows that CBNRM has made some strides in strengthening and creating new organisations/institutions, empowering local communities, creating social networks and improving the institutional capacity of community trusts. Communities receive benefits from employment opportunities, social infrastructure, provision of transport, and assistance on meeting the costs of funerals. However, the contribution of most of the benefits to livelihood diversification is limited as they mainly accrue to the communities rather than individuals. The programme faces many challenges, such as limited institutional capacity for running organizations, insecurity of tenure, stakeholder conflicts, mismanagement of funds, and problems of how to use and equitably distribute the financial benefits to individual households.