Land use in the Chittagong Hill Tracts (CHT) of Bangladesh had undergone changes over the past several centuries. The landscape, which was mostly covered with forest with interspersed shifting cultivation plots until the beginning of the colonial period, has gradually changed into a landscape with a blend of land uses. Overall, the forest area has gradually declined, while the area under shifting cultivation and sedentary agriculture has expanded. The process of the change was multi-directional. National forestry, land use, land taxation, population migration policies, and development activities, such as construction of a hydroelectric dam and roads, played an important role in this process. Shifting cultivation had inflicted little damage on the forest until the beginning of the colonial period. The pace of deforestation accelerated with the nationalization of forests which abolished tribal people's customary use and management rights to the forest, and allowed large-scale commercial logging both legally and illegally. The pace was further intensified by the policy encouraging population migration to CHT and construction of a reservoir on the Karnafuli River. Efforts were made to replace shifting cultivation with more productive types of sedentary agriculture. However, much change could not take place in the absence of secure land rights, supportive trade policies, and the required support services and facilities, including infrastructure. Locationally suitable land use evolved in areas where transportation facilities were available and farmers were granted land title with the necessary extension services and credit facilities. These findings have important policy implications for the promotion of environmentally and economically sound land use in CHT.