Tea in Laos is mainly grown and collected by smallholder farmers. It thus has a strong potential to contribute to poverty alleviation and rural development. Despite a relatively large production area, the volumes of tea produced and exported are low. Laos could take advantage of favorable production conditions, unique varieties and traditional know-how to develop a high-quality tea sector. The most pressing issue is to improve quality both inside the tea garden and at later stages (harvesting, processing). It is important to note however that improving farmer capacity can only be successful if the value-chain is organized in a way that farmers are able to reap the benefits of their efforts towards improved quality. A sustainable and inclusive tea sector strategy focusing on the livelihoods and benefits of smallholder farmers, fair trade practices, building up and/or upgrading local processing facilities and diversified markets should be collectively defined.