The orange-bellied Himalayan squirrel Dremomys lokriah is used for medicinal purposes by the Apatani community in north-east India. The monetary value of the species has increased 40-fold since 1986. Hunting is perceived to be the primary cause of the decline of D. lokriah but this is now being curtailed through a unique social restriction system (Dapo) under the administration of the traditional village council (Builyang). Here we report on the socio-ecological values of D. lokriah and the traditional hunting system, and conservation initiatives implemented by the Apatani community to conserve the species. This initiative is an opportunity for government agencies and conservationists to merge a traditional knowledge system with modern conservation methods and strengthen participatory conservation management.