Studies of the history and current status of forest resources in Northeast China have become important in discussions of sustainable forest management in the region. Prior to 1998, excessive logging and neglected cultivation led to a series of problems that left exploitable forest reserves in the region almost exhausted. A substantial decrease in the area of natural forests was accompanied by severe disruption of stand structure and serious degradation of overall forest quality and function. In 1998, China shifted the primary focus of forest management in the country from wood production to ecological sustainability, adopting ecological restoration and protection as key foci of management. In the process, China launched the Natural Forest Conversion Program and implemented a new system of Classification-based Forest Management. Since then, timber harvesting levels in Northeast China have decreased, and forest area and stocking levels have slowly increased. At present, the large area of low quality secondary forest lands, along with high levels of timber production, present researchers and government agencies in China with major challenges in deciding on management models and strategies that will best protect, restore and manage so large an area of secondary forest lands. This paper synthesizes information from a number of sources on forest area, stand characteristics and stocking levels, and forest policy changes in Northeastern China. Following a brief historical overview of forest harvesting and ecological research in Northeast China, the paper discusses the current state of forest resources and related problems in forest management in the region, concluding with key challenges in need of attention in order to meet the demands for multi-purpose forest sustainability and management in the future.