The purpose of this research was to understand the mechanism of Swamp Forest Restoration in Sunamganj (SFRS) project for the purpose of analyzing the linkages between natural resource conservation and livelihood security, its impacts on major capital assets of local community, and the views and perspectives of different stakeholders. I applied the Sustainable Livelihood Approach (SLA) Framework for the analysis. The study followed a qualitative research approach which was supplemented by quantitative data. It was found that local community members were mobilized by the SFRS project in four selected areas: i) conservation and management of flooded forest, ii) capacity building activities, iii) providing Alternative Income Generating (AIG) activities, and iv) raising awareness. The project activities were found useful in building natural, social and human capitals of the project participants. However, limited community participation was found, perhaps due to variations of opinion among stakeholders regarding the SFRS project and its activities.