This study was carried out in Bhodkhore Community Forest Users Group (CFUG) in Parbat district, Nepal with the overall objective to develop a clearer understanding of the role of service providers in Community Forestry governance. The focus of this research is on the identification of activities affecting good governance, on the share of contribution of service providers to these activities and to their effectiveness, and on challenges faced by service providers while working in this CFUG. The identified major activities of service providers seemed to be more effective in improving the situation of good governance when they had almost an equal share of contribution. There are challenges mainly in financial resource and time management, and adequate technical support in forest management. However, the role of service providers in this CFUG is found effective in improving the situation of good governance in spite of existing challenges.