The study assesses the economic loss of timber due to over stumps and defects in community forests in Terai, Nepal, highlighting significant volume and monetary losses, especially in the Deurali community forest. A total of 375 stumps and 224 defected logs were measured, revealing that over stumps caused a loss of 15.217 m3 and defects resulted in losses ranging from 128.57 to 284.21 m3. Key factors identified included the use of saws and axes for felling and diseases affecting tree quality, with total monetary losses estimated at approximately US$ 24,166.60 across the forests.