This study investigates the impact of canopy openness on forest regeneration and soil nutrients in six community forests within the Chure region of Makawanpur district, Nepal. A systematic sampling approach was employed across three canopy cover classes—dense (70–100%), moderately dense (40–70%), and open (10–40%)—to assess seedling and sapling densities, tree diversity, and soil nutrient composition. The results indicate that seedling density was highest in open canopy strata (18,870 per ha), followed by moderately dense (14,281 per ha) and dense (11,185 per ha) strata, with significant differences confirmed by ANOVA (p < 0.05). However, sapling density did not vary significantly among canopy classes (p > 0.05). Tree diversity, as measured by the Shannon-Weiner and Simpson indices, was greater in dense canopy strata compared to open and moderately dense strata. Soil analysis revealed that canopy openness positively influenced soil organic matter (SOM), soil organic carbon (SOC), and nitrogen (N) levels, while phosphorus (P) and potassium (K) showed no significant variation among canopy classes. These findings highlight the dual role of canopy openness in facilitating forest regeneration and enhancing soil quality. The study concludes that balanced canopy management can optimize regeneration dynamics and soil health, providing crucial insights for sustainable forest management in subtropical ecosystems. Keywords: Canopy, Diversity, Management, Regeneration, Soil