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The study was caried out in Peru in 2003 and 2004. The study aims to increase the chances of future success of forest rehabilitation efforts by identifying the strategies that best contribute to long-term sustainability with minimal negative effects on stakeholders. Specifically, the study derives strategic lessons from the past and ongoing initiatives. The study identifies and disseminate the most promising approaches and incentives for rehabilitation in different ecological and socio-economic situations. This document describes the research methods, the main results, conclusions and recommendations of the Peruvian study. The lessons learned from the study were varied. They emphasize funding aspects (through credits, competing funds, premiums); commercial opportunities for tree species with short harvesting cycles and growing market acceptance; the need to link markets and to add value to products from rehabilitated areas; the need to incorporate traditional knowledge and ensure active local participation from the beginning; and finally, not to raise unrealistically high expectations. One recommendation highlights the need to systematize the existing information and experience on applying and disseminating forestry and agroforestry practices that are good for rehabilitating degraded forest lands.