Sustainable management of natural resources is the prime concern of global community while rapid industrialization and unsustainable utilization have decreased world's natural resource in a pace. Forest certification has been emerged as an innovative market-based mechanism to ensure sustainable management of forests however, Non-timber forest products (NTFPs) certification is unable to take its momentum due to absence of local criteria and indicators being the most important factor. A comprehensive study was carried out by reviewing global initiatives for NTFP certification to formulate local level criteria and indicators. Field study was based in Rolpa and Palpa districts of western Nepal where direct field observation and Key Person Interview were conducted. This research proposes 7 criteria and 32 indicators for the NTFP certification for Nepal. Criteria for NTFP certification includes (1) Natural status of NTFPs, (2) Collection system, (3) Research and Development, (4) Domestication and cultivation, (5) Enterprise development and value addition, (6) Marketing, and (7) Awareness. These criteria and indicators are expected to be a useful tool for concerned stakeholders at local level for evaluating sustainability of NTFP.