Spurred by the degraded forest in the 2022 Chongli Winter Olympic Games area, the Chinese government initiated a national program for mountain forest rehabilitation. We developed a method to assess the quality of mountain forests using an index system composed of stand structure, site conditions, and landscape aesthetics at three criteria levels. The method involves index weights determined by the analytical hierarchy process (AHP) and entropy method. The results show that landscape aesthetics was the most important measure for the criterion layer. Slope aspect and naturalness were the most and second-most important indices, respectively, for the alternative layer. The quality of the mountain forest in the Chongli area was divided into four grades. The area had 7.8% with high quality, 46.7% with medium quality, 36.6% with low quality, and 8.9% with inferior quality. In total 76.6% of the damaged forest were distributed on sloping and steep sloping ground at 1700 to 2050 m altitude, and Betula platyphylla Sukaczev and Larix gmelinii var. principis-rupprechtii (Mayr) Pilg. were the predominating trees. The damaged forest was divided into over-dense, over-sparse, degraded, inappropriate tree species, and inferior landscape forest. For different types of damaged forest, corresponding modification measures were proposed. The methods developed in this study can be used for rehabilitation projects to improve the quality of degraded forests in mountainous temperate areas.