The critical issue is how to allocate resources to development in dryland areas in a way that is beneficial to the poor and at the same time can stimulate investments in ecosystem conservation. This challenge is made greater by the diversity, vulnerability and transition that characterize drylands. To help meet this challenge, the paper supports an ecosystem approach that considers how human use of an ecosystem can maintain both its functioning and productivity, which in turn feeds back to support human well-being. We begin by describing the main elements of ecosystem services and human well-being before going on to examine the links between them, including conflicts and trade-offs. We then propose intervention strategies to address these issues, and ways of improving policy coherence. Finally, we summarize by listing the main challenges for implementing an ecosystem approach.