This document discusses participatory monitoring and evaluation (PM&E) and its implementation in projects in China. It defines PM&E as a process that involves stakeholders at different levels in monitoring, evaluating, and acting on the results of particular projects or policies. It discusses why PM&E is needed, how it was implemented in two projects in China, and what the benefits and challenges of PM&E were. Key recommendations include making PM&E part of the regular monitoring and evaluation systems of development projects and allocating sufficient funds for PM&E activities.