Abstract. Danarto SA, Budiharta S, Fauziah. 2019. Tree species preference and rehabilitation perspective by local community: Case study in Bondowoso, East Java, Indonesia. Asian J For 3: 54-63. Study of community’s preference on tree species used for rehabilitation programs was conducted in Gubrih sub-watershed, Sampean watershed in Bondowoso District, East Java. The aim of the study was to find out tree species that have ecological values as well as are preferred by local community for rehabilitation program in the region. Questionnaires were distributed to respondents chosen randomly (i.e. to minimize bias) to select tree species which have ecological and/or economic values. Result of the study showed that among 62 species of trees listed in the questionnaire, there were 45 species chosen by the respondents. There were 13 species of trees selected by more than 20% of total of respondent (high preferred), suggesting the potential list of species for rehabilitation programs in the region. Local community in Gubrih Sub-watershed have understood the importance of trees as a source of income as well as a measure to conserve environmental functions. This is strengthened with land-use systems they selected which prefer tree-based land-use system, such as in the form of plantation of timber species and agroforestry over dry land agriculture. The findings of this study suggest that there is opportunity in rehabilitating degraded lands in Sampean watershed using tree species preferred by local community under the land use system of timber plantation or agroforestry. Our study demonstrates that similar strategy of incorporating ecological and socio-economic perspectives could be applied to another regional context to enhance the chance of success of rehabilitation programs.