Due to the high economic importance of bamboo shoots and bamboo timber in the Southwest of China, natural bamboo forests are experiencing serious biodiversity challenges. Intense management of monoculture forests significantly declines the soil’s self-fertilizing capacity and in return destroy habitats for plants, animals, and micro-organisms. To address these issues, the project developed biodiversity conservation and sustainable use models in the bamboo forests. These models contributed to gain in biodiversity. Three bamboo forest sites are actively managed and are planned to continue to act as local experimentation and demonstration sites for biodiversity management. Through this project, policy recommendations have been established and submitted to the State Forestry Administration and provincial governmental agencies.