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This info brief provides information on the positive and negative impacts, challenges and reformulation policy on woodcarving industry. The positive impacts in many developing countries are: to contribute significant income, provide safety net, and it links to tourism and adds considerable value to wood compared to others. The negative impacts are that it depletes raw materials and can affect biodiversity of indigenous forest and impacts negatively on livelihoods of some non-carver households. This brief than identify the challenges to sustain the woodcarving industry and to sustain the resource. Present policies neglect the significant economic and livelihood contributions of forest products other than timber. This brief concludes with recommendations to policy makers in Forestry, Tourism and Development sectors on reformulating the present policy.