The common properties in Chittagong Hill Tracts of Bangladesh have been degraded due to curtailment of right by the Forest Department, government policy relating to modernization of the central economy, deployment of military and settlement programs in the land of indigenous people. Therefore, in the context of common property management, the research study aimed to identify state’s role on conversion of indigenous people’s common property and also discovered customary practices of the indigenous people. The findings of the study reveal that government policy regarding conservation of forest and non-recognition of the customary rights over indigenous land in the national legal frameworks have negative consequence over the environment and forest of the Chittagong Hill Tracts. The study shows that indigenous peoples have their traditional knowledge which is effective for the conservation of nature and supporting livelihood which are not being recognized by the state legislation. The study explores that detachment of the indigenous people from their own land brings destruction of nature and misery for the indigenous livelihood.