This paper focuses on participatory testing of decision making tools (DMTs) at village level to assist in development of land use plans (LUPs) for sustainable land management (SLM) in Kilimanjaro Region, Tanzania. Data were collected using conditional surveys through key informant interviews with the project’s district stakeholders in each district, focused group discussions with selected villagers and participatory mapping of natural resources. Soil health, land degradation, carbon stock, and hydrological conditions were assessed in the seven pilot villages in all seven districts using DMTs as part of testing and validation. Results indicated soils of poor to medium health, and land degradation as portrayed by gullies and wind erosion in lowlands and better in uplands. Carbon and forest disturbance status could not be assessed using one-year data but hydrological analysis revealed that water resources were relatively good in uplands and poor in the lowlands. Challenges with regard to land use include increased gully erosion, decreased stream flow, reduced vegetation cover due to shifting from coffee with tree sheds to annual crops farming, cultivation near water sources, and overgrazing. Empowering the community with decision making tools at village level is essential to ensure that village land uses are planned in a participatory manner for sustainable land and natural resources management in Kilimanjaro and other regions in Tanzania.