Abstract. Brites AD. 2020. New Forest Code effects over smallholder’s intention to trade non-timber forest products. Asian J For 21: 41-45. The Brazilian new Forest Code (NFC) allows the sustainable economic use of one of its main mechanisms for native vegetation protection: the Legal Reserves. Smallholders' intention to trade non-timber forest products (NTFP) from such areas was accessed. Data were collected through 350 in-person surveys in two municipalities from Bahia, Brazil. Outcomes showed that more than half of the respondents do not intend to trade NTFP from their Legal Reserve areas and, the lack of knowledge about the process to obtain government permission for the economic use of these areas, was the main reason gave to justify it. Further, higher household incomes showed a negative correlation with the intention. Incentives from public or private policies and dissemination about the steps needed to obtain permission for Legal Reserve’s sustainable use are needed for engaging smallholders in NTFP trade. With these incentives, it would be possible to increase the NFC potential for adding economic value to the protected native vegetation and for linking conservation with the economic development of rural areas inhabitants. Thus, these outcomes add up to previous findings of the benefits of NTFP trade, and in terms of practice and policy, they can help in the development of environmental policies that incentivize the NTFP trade, contributing to increase landholders’ incomes and to the NFC compliance.