Applied ethnobotany is a nev subject in ethnobiological sciences referring to the transferring, reviving and cultivating ethnobotanical knowledge among different social groups within intra-and-inter-communities. Much research related to biodiversity in many countries is largely devoted to the gathering of more academic information, rather than to more incise studies focusing on finding answers to pressing challenges related to the use of plants by communities. China is a country possessing rich biodiversity and cultural diversity. The long history of Chinese traditional medicine, diversity of cultivated crops and utilization of wild plant species are great cultural traditions to the country. Today, many societies of the country are still intricately linked to the natural environment economically as well as societies and groups within China. However, China is facing major changes in modernization of the country's economy, and globalization to form part of the world exchange system. Increasingly high levels of consumptions of natural plants, as well as national and international trades on plant products have resulted, space in over-harvesting of wild resources and accelerated environmental degradation. Local social structures and cultural traditions have also changed in order to cope with policy changes. In this background, over the last decade, applied ethnobotany for rural community development and conservation has been employed in different field projects and ethnic minority communities in Yunnan province of China. The applied ethnobotany has focused on work at community level to achieve sustainable use of natural resources and conservation. This presentation discusses findings and lessons learned from the projects on alternatives and innovations to shifting cultivation in Xishuangbanna, southwestern China.