The paper reports the development and evaluation of relevant local ecological criteria and indicators for participatory resource management of community forest. The study site, the Nong Meg-Nong Hee community forest, Maha Sarakham Province, is in northeastern Thailand. Multi-criteria decision-making (MCDM) was adopted as a decision-making tool to evaluate criteria and indicators, using coarse and fine screening, based on local community participation. The criteria and indicators set consisted of 3 principles, 7 criteria, and 41 indicators covering the main attributes of forest ecosystem conservation. Relevant data were processed in a hierarchical framework and used as a template for further assessment, i.e., Principle 1 (forest ecosystem structure and composition), Principle 2 (forest ecosystem function), and Principle 3 (disturbance signs). The two selection phases comprised (1) the coarse screening based on scoring and ranking, and (2) fine screening, using a pair-wise comparison analysis to classify the order of relative weights of the indicators (importance value) and the consistency index (CI) of each criterion. As a result of coarse screening one criterion and 16 indicators were eliminated from the analysis, while the remaining 3 principles, 6 criteria, and 25 indicators were retained for fine screening. Most criteria showed an acceptance value of less than 10% (tolerance consistency index threshold level). The final set of criteria and indicators, based on locally understandable ecological concepts of forest conservation, was ranked in order of importance under each criterion and applied to the study area. We conclude that these techniques are appropriate for selecting criteria and indicators, as they are relatively transparent, understandable and offer an input to participatory decision-making.