Community-based management holds the potential to simultaneously deal with the multiple objectives of community economic development and the conservation of natural resources. Pred Nai Community Forestry Group based in the coastal mangrove forests of Thailand was recognized by the UNDP in 2004 as an example of a successful case of community-based management. The overall purpose of this research was to study the Pred Nai group in order to learn about the institutional and organizational characteristics, and the cross-scale linkages that facilitate community-based management. This qualitative research was carried out during four months of fieldwork in rural Thailand using interviews and participant observation.Pred Nai Community Forestry Group has been working toward the sustainable use and restoration of the local mangrove forest. The principal means they have employed includes the restoration of formerly logged and degraded areas and the development of a forest management plan. In addition to stopping the loss of existing biodiversity, their efforts have also resulted in the return of many formerly displaced native fauna, including species of wetland birds and monkeys.Pred Nais conservation efforts have also had a direct impact on alleviating poverty and facilitating local economic development. This has come about through the improvement of yields in the local crab harvest, the utilization of non-timber forest products from the mangroves, and the establishment of a village savings fund to assist with social and economic development initiatives. The restoration and conservation of mangrove forests has improved the long-term sustainability of the villagers economic activities.Research on Pred Nais community-based management program revealed the importance of the following factors: (1) Availability of funding to proceed in small, practical steps; (2) A village savings group that provides capital, training, and lends credibility to the community; (3) Step-wise evolution leading to formal management; (4) Step-wise evolution allowing for capacity building over time; (5) Interplay of leadership, community cohesion and NGO support; (6) Leadership as key to grassroots movement; (7) Partnership with a key organization for building capacity and establishing linkages, in this case, RECOFTC; (8) Horizontal learning among communities as the key to replication of experience, and; (9) Local ecological knowledge as the foundation for environmental stewardship.The community did not immediately assume full responsibility for the management of the mangroves, but instead progressively assumed a greater role over time as the community built capacity and gained experience. Strong leadership within the community also played an important role as it ensured that the community members remained united in support of Pred Nais conservation and management efforts. It was found that Pred Nai has formed numerous important linkages with external organizations, i.e. government, NGOs, and other communities, at the sub-district, provincial, national and international levels. Networking and other forms of horizontal learning between communities also played an important role in the replication of Pred Nais successful initiative in other communities. Local ecological knowledge also played a role in Pred Nais success as the community members knowledge of the mangrove forest allowed them to create rules which were relevant to local ecological conditions, thereby helping the community to conserve a resource that provides at least part of the livelihood needs for 80% of Pred Nai villagers.