This paper discusses the financial analysis of managing bamboo stands in natural forest. Throughout the analysis, actual costs incurred by the Forest Research Institute Malaysia (FRIM) in setting up trial plots in Kedah were studied. Results from the analysis show that the project is financially viable at a price of RM 0.80/culm provided that the project is financed at a lower interest rate. The project would be very attractive if bamboo culm could fetch a higher price or if yield could be improved.