Forest landscape restoration has emerged as a key strategy to sequester atmospheric carbon and conserve biodiversity while providing livelihood co-benefits for indigenous peoples and local communities. Using a dataset of 314 forest commons in human-dominated landscapes in 15 tropical countries in Africa, Asia and Latin America, we examine the relationships among carbon sequestered in above-ground woody biomass, tree species richness and forest livelihoods. We find five distinct clusters of forest commons, with co-benefits and trade-offs on multiple dimensions. The presence of a formal community management association and local participation in rule-making are consistent predictors of multiple positive outcomes. These findings, drawn from a range of contexts globally, suggest that empowered local forest governance may support multiple objectives of forest restoration. Our analysis advances understanding of institutional aspects of restoration while underscoring the importance of analysing the interconnections among multiple forest benefits to inform effective interventions for multifunctional tropical forests.