Abstract: Ecological public welfare forest construction is an effective mean to improve sustainable forest management. This paper analyzed the effects of ecological public welfare construction on the quantity, quality and structure of forest resource, based on the survey data in Lin’an. The results show that ecological public welfare construction will play a positive role in improving sustainable management, if farmer’s income mainly comes from non-agriculture sector or non-wood forest products. Increasing the compensation standard is not the necessary condition to improve ecological public welfare forest sustainable management.