Mangla is the second largest dam in Pakistan, commissioned in 1967. A Watershed Management Project for the dam’s catchment area was initiated simultaneously with the main objective of reducing sediment inflow into the Mangla reservoir and hence to prolong its life. An evaluation of the watershed management program was carried out. This paper describes the environmental aspects of the project observed during the evaluation, and suggests measures for improving the reforestation formula, and for setting up a monitoring network that could yield data for realistic assessment of the watershed’s performance.