Mangrove forests of Tanzania are reserved by law, but the capacity to effectively enforce this institution has remained far from reach and mangrove forests continue to be exploited as cheap sources of wood and forest land for other uses. Often, the rural poor who depend on mangroves for their subsistence are pointed out by the state institutions as culprits of the degradation. Promisingly though, this paradigm is being offset by the emerging positive view about human proclivity for caring and nurturing common resources. Traditional and community based forest management practices are emerging as appropriate alternatives to state control and institutional arrangement for ensuring sustainable management of forest resources. Nonetheless, community based management has not yet been robustly implemented for mangrove forests in Tanzania. Retrospectively, this paper argues that nationalization of mangrove forests has not been successful in reversing mangrove degradation. The experiences have instead been the frictions between people and the state, as desperate rural poor continue to plunder on and make a living at the expense of mangrove forests. The paper exemplify how policy failure, weak or dysfunctional state institutions in Tanzania compounded by little participatory awareness and self commitment are ruining the restoration and conservation initiatives.