Owing to the increasing population, soaring unemployment rates, and wide spread poverty in Egypt, the biggest challenges facing the nation are the improving of the human development index, redistribute the population, sustain the most biodiversity value, and to have a strategic plan for the future generation. The paper discusses the different dimenssions of the population problem in Egypt and shed light on its impact on some of the environmental issues and concerns that affect the sustainable development of the nation. It also discusses people’s participation in the local development planning and the need for community-based management of local resources and specially biodiversity. The paper focuses on the need for knowledge and skills to empower the people to manage their environment. The responsibilities and benefits of development should accrue at the community level. All stakeholders within the private community, government and non-government bodies, and the public at large should be identified and become actively involved through acceptable forums. Basaisa Village (Al-Sharkiya Governorate), New Basaisa Community (Ras-Sudr, South Sinai Governorate), and St. Kathrene Medicinal Plant Association (South Sinai Governorate) are discussed and presented as case studies. Key issues are: Public Awareness, Transfere of Knowledge, Coordination, and Integration. The development plan should integrate the different activities, address different needs, and promote the sharing of benefits by all stakeholders. It should also respect the traditional knowledge.