Commercial forestry is a growing industry in Tanzania, and is central to several major development sectors including construction and rural electrification, and is among the measures which are needed to combat forest loss and address the growing wood supply deficit. The Forestry Development Trust (FDT) is an independent, Tanzanian legal entity which was established in 2013 to help transform the commercial forestry sector by making it more competitive, inclusive and resilient. This paper draws together findings from various lines of FDT’s work with partners over the past two years including: (i) an industry outlook for plantation resources and wood markets; (ii) performance measurement of tree improvement genetic trials; (iii) tree grower practices adoption surveys in the Southern Highlands; and (iv) private sector inputs to the revision of the National Forest Policy. Collectively, this work highlights three messages which are relevant to the transformation of the sector. Firstly, the private sector plays a fundamental and growing role in commercial forestry (including tree growers, investors, SMEs and service providers). This requires an enabling policy environment that recognises private roles, addresses key constraints, and stimulates investment and innovation. Secondly, the power of collaboration by public and private actors in technical innovations such as tree improvement research is immense, as it allows for leverage and sharing of technical and financial resources. Ensuring coordinated and sustainably-funded tree breeding is a key challenge to the sector. Thirdly, the sustainability of commercial forestry development and national tree planting initiatives depend on explicit recognition of economic and technical considerations including grower incentives, financial viability, site-species selection, and the quality of inputs and practices.