Abstract: The cooperation between state-owned forest farms and communities developed in Sanming City, Fujian Province, is of important practical significance for solving the development dilemma of poor forest management benefits and the fragmentation of forest land in collective forest areas, and for exploring the path of realizing forestry-driven rural economic development. This article analyzes the mode of cooperative forest management in Sanming from four aspects: cooperation motivation, cooperation methods, division methods of management and profit distribution schemes, and proposes an innovative and optimized cooperation mode to help solve the problem of uncoordinated interests between state-owned forest farms and communities. The promotion of government, diversified stock share methods, efficient and win-win business division, profit pre-dividends, profit guarantees and other profit distribution plans are the key to maintaining cooperation. This research is conducive to promoting the smooth operation of forests by state-owned forest farms and communities in other areas, especially for southern China’s collective forests, in order to improve the ecological and economic value of forests and realize rural revitalization.