Galicia is the most important forestry region of Spain, but its potential as an engine for economic growth is underdeveloped. Most forests in Galicia are privately owned in small holdings that make it difficult to carry out the sustainable forest management required for forest sector development. This paper outlines a sustainable forest management strategy, and then describes forest management processes and supporting technologies that are seen as necessary for promoting sustainable forest management in a region predominated by small forest ownerships. The paper ends with a brief description of the initial steps that have been taken to implement the strategy. Key words: forest sector planning, small private ownerships, rural and regional economic development, Spain