A study was carried out to evaluate the effect of shelterwood cutting methods on stand structure and regeneration density. Data were collected from a northern hardwood forest stands in Iran with Fagus orientalis Lipsky as dominant species, with/without shelterwood cutting operation. Results clearly demonstrate that the management of Fagus orientalis Lipsky with shelterwood cutting system affected the frequency and diversity of the understory herbaceous species. The frequency of Viola silvestris Lam., Asperula odorata L., Carex spp. and Rubus hyrcanus Juz increased significantly after shelterwood cutting. The DBH (diameter at breast height) of commercial species in control stands (57.50±2.15 cm) was greater than that in treated stands (50.67±1.88 cm),whereas the total height of trees was similar between treated and control plots (21±0.5 m). The number of Parrotia persica seedlings increased by 13.2% from 1995 to 2005 whereas the number of Fagus orientalis and Carpinus betulus seedlings significantly decreased from 1995 to 2005. In conclusion, it confirms that instead of shelterwood cutting method other silvicultural practices such as selection cutting method should be applied for the mountainous beech stands of Hyrcanian forests.