Abstract: Collective forest tenant reform in China has laid an ownership foundation for the rational transfer of collective forest land and forest stands, which may speed up the forest transfer in the ethnic minority communities in the mountainous areas of Yunnan Province. However, there are many problems in the transfer course due to the lack of relevant experience and ability. According to the study on Lisu ethnic minority communities in Tengchong County, it was found out that the reasonable transfer of forest land and forest stands could be realized and the local people might enjoy the benefits from forest management only when the administration of transfer process is normalized, the sound transfer market is set up and the rational transfer price system is built. It will be helpful when the supervision and administration organizations are improved and the incentive mechanism for the transfer of collective forest land and forest stands is set up.