Since the late 1980s, biodiversity conservation efforts have expanded to incorporate delivering social and economic benefits to communities nearby or within protected areas. Benefits can generate incentives to encourage conservation support; however, such incentive-based programmes (IBPs) have been criticized owing to their inability to provide equal and equitable distribution of benefits. This research examines the distribution of IBPs in the buffer zone of Nepal's Chitwan National Park (CNP). Questionnaire interview data indicate the livelihoods of buffer zone residents remain strained by conservation activities. While benefits under IBPs are recognized by the residents, villages distant from the main tourist entry points to the park where costs associated with conservation are highest recognize few benefits. An individual's level of participation in tourism also affects the benefits received, with those directly employed in tourism receiving the most benefit. Despite the discrepancy in benefit distribution between villages and between levels of involvement in tourism, CNP is making progress in distributing benefits beyond villages where tourism is concentrated. The main IBP flaw in CNP is a limited ability to replicate benefits throughout the buffer zone, providing similar levels of benefit to all villages.