The objectives of Reducing Emission from Deforestation and Forest Degradation, forest conservation, sustainable management of forests and enhancement of carbon stocks (REDD ) can be achieved if communities are actively involved in and benefit from forest resource management. The study examined factors affecting justice in REDD benefit sharing in community forestry in Nepal's Terai region. The most influential factors identified were the economic status of forest users, the decision-making process, conflicting issues within the community and the accountability of local leaders. Poor people are highly dependent on forest resources, while the rich benefit comparatively more from their control over decision-making structures. Rich people participate less in community development work but more in the decision-making mechanism in community forestry. The poorer representation of disadvantaged forest users in decision-making limits their influence on the accountability of the authorities to local needs. Democratically elected and accountable leadership creates opportunity for justice in REDD benefit sharing among users. Accountability towards poor and disadvantaged people could be improved by developing the leadership skills of the poor and disadvantaged forest users at local level. The factors described in the study affect justice in benefit sharing, and have policy implication for the success of REDD both at the local and regional level.