Forest and landscape restoration in the tropics is often undertaken by groups of smallholders and communities whose livelihoods are primarily agricultural and forest-based. In the Philippines, the implementation of forest restoration programs involving people’s organizations showed mixed results. We present a case study of a pilot community-based forest restoration project that was undertaken in Biliran Province to understand the impediments, and pilot test interventions to improve restoration outcomes. The project was designed using systems thinking, employing smallholder-based best-practice, and applying the principles of a participatory approach. The results revealed that the initial participation of smallholders is mostly driven by short-term financial incentives. However, long-term commitment to managing the trees is attributed mainly to sustainable livelihood, land and tree rights, equitable sharing of benefits, strong leadership, effective governance and improved human and social capitals. The support of extension officers, use of high-quality seedlings, and participation of women are essential for community-based forest restoration success. Key lessons from our research could contribute to fulfilling the forest and landscape restoration commitments of developing countries in the tropics.