The Lancang-Mekong Basin (LMB) is endowed with incomparable richness, ranging from uncommon fauna amid breathtaking natural vistas to communities with distinct cultural history. It supports more than 60 million people and has some of the most naturally varied environments in the world. However, the LMB is also among the regions of the world that are most susceptible to the effects of deforestation and forest degradation. These processes impact local people, biodiversity and natural resources, and have cascading effects. This report sets out to assess changes to ecosystems and to livelihoods dependent on ecosystem services, using case studies demonstrated through pilot activities at selected areas in Cambodia and China. It also provides recommendations from the perspectives of both the case-study level and LMB regional level to promote improvements to ecosystem health, natural resources management and sustainable livelihoods.