Participatory forest management is credited for supporting social learning processes and fostering capacity of forest users for collaboration and collective actions. Despite more than a decade of practice, the empirical evidence substantiating the contribution of participatory management for the capacity development of forest users is scarce. This study assesses a participatory forest management program in Madhupur Sal forest, Bangladesh, by comparing the capacity of de-facto groups of participants and nonparticipants and identifies factors that influence the capacity development.