The Reforestation policy was implemented since 1 October, 1996, and carried out until 31 December, 2004. The main objective of this study is to overall assess this reforestation policy, including the analysis of the policy implementation results, the effectiveness of the policy of achieving policy objectives, and making policy recommendations. The main results and policy recommendations are summarized as follows: (1) Most of the government officials and academics surveyed agree that the implementation of reforestation policy can provide the function of national land conservation and environmental preservation. (2) The implementation of reforestation policy is however ineffective in reducing the area of overcapacity use of forestland. How to design and implement a reforestation policy to alleviate the problems of over-capacity use of forestland is still a challenge for the future. (3) Government officials and academics share more common ground regarding the reforestation policy, they however experienced significant differences in ideas and beliefs with environmentalists. Among them the common goal of environmental preservation is the same, the differences are on the effectiveness of the reforestation policy. These differences should be narrowed through more in depth communication and interaction. (4) After the termination of reforestation policy, a new reforestation policy is still needed. By taking into account the geographical and environmental conditions, the amount and duration of subsidy should be carefully designed. (5) Government should design policy measures to provide incentives for foresters to maintain matured forests. (6) Government should allocate budget to enforce the related regulations to reduce the total area of the over-capacity use of forestland. (7) Government should review the current zoning and classification of forestland (including public and private forestland). The criteria for classifying economic forestlands should be made more restrictive and the total area of economic forestlands should be down sized. (8) Forestlands should be classified into conservation forestland and economic forestland, and accordingly managed and supervised by separate measures. (9) For those private and rental forestlands designated for conservation purposes, government should allocate annual budget to purchase those lands. For those lands not yet purchased by the government, government should strengthen the management measures, forbidding harvest and providing matured forest subsidies. (10) The management strategy of economic forest should take into account economic effectiveness. Government should design effective measures to provide incentives to economic forestland to enhance its public welfare performance.