The Philippines' Community-Based Forest Management (CBFM) Program is the primary strategy for sustainable forest management and social justice in the uplands. The upland communities provided a catalytic role to restore degraded forestlands and protect the remaining forest cover in the country, but unlike the timber license agreement (TLA) concessionaires, they do not have enough assets to fulfill their needs and responsibilities. They are also subjected to restrictive policies beyond their capacity to follow. While numerous works of literature have been written on the successes and failures of different modes of community forestry in Asia and the Pacific for the past two decades, very limited, if any, attention has been given to the role of community welfare as a prerequisite for sustainability and social justice in forestry. Using the data on national CBFM assessment in the Philippines, this paper critically examines the CBFM Program after more than two decades of implementation using the community welfare lens. Thematic analysis of results revealed that in achieving sustainability and social justice in forestry, the following crucial elements should be taken into account: (1) land tenure is a crucial aspect of community welfare but the complexity of social-ecological relations must be taken into account; (2) skewed priority towards biophysical targets undermines the importance of socio-economic needs and considerations in the uplands; and (3) restrictive and conflicting policies significantly diminishes the potential of CBFM for transformative change.