Due to the degradation of fishery resources, the coastal ecosystem has deteriorated and conflict among fishermen in Phang-Nga Bay has intensified with the fish output becoming unsatisfactory. Various factors have aggravated this situation: inappropriate methods particularly the former management measures which had been established by the government sector, lack of participation and poor cooperation of the fisher community. To solve this problem, the Community-based Fisheries Management (CBFM) of which the essence is that the fishermen/fishermen’s organizations/communities and the government sector share their responsibilities in fishery management, has been initiated in two pilot coastal fishing villages of Phang-Nga Bay, namely Ban Bang Chan and Ban Haad Sai Pleug Hoy in 1995. The result of CBFM in the Bay has been successful in the short term. The fishery management through the CBFM approach has created better overall outcomes at present (1999) than those of the former system, and fishers are predominantly convinced that the present CBFM would produce good overall outcomes in the next five years than the present time. The key conditions for the success of CBFM are: socioeconomic status of the community such as community homogeneity and people’s dependence on fisheries; active participation, cooperation and coordination of various stakeholders; collaboration, support and advice from outside agencies; and the last condition is follow-up and evaluation to be carried out closely and continuously by responsible agencies. The process of CBFM in the Bay began with the organization of a workshop to get the acceptance, commitment and consensus of key stakeholders on the CBFM workplan components. This was done before selection of the appropriate target villages, organization of the meeting and selection of a village committee. The stakeholders were familiarized with the CBFM workplan objectives to be realized with a view to acceptance by the stakeholders in the villages. Later on, the problems faced and needs of the villages were discussed and taken into account in the workplan. The implementation of all activities has been conducted mainly by the fisherfolk themselves under the supervision and support of Andaman Fisheries Development Center (AFDEC) and other organizations such as the Bay of Bengal Programme (BOBP), Phuket Fisheries Association, etc. Lastly, close and continuous follow-up and evaluation of the implementation have been performed during bimonthly meetings of the representatives from the target villages; the meetings rotate from one village to another to achieve the effective output and these give them the opportunity as well to exchange experiences both positive and negative in order to improve, to adjust and to develop the current activities for the success of CBFM approach.