ABSTRACT: The study assessed the effects of institutional change on forest resource governance. The study was conducted at Chinene Forest Reserve (CFR) at Bahi District, Tanzania. Primary data were collected through household questionnaire survey, key informants interview, and focus groups discussion, while secondary data were collected through documentary review. Both descriptive and inferential statistics were employed in data analysis. The levels of resource governance differed significantly before and after decentralization. About 61% of the respondents perceived that overall forest resource governance (good governance) had improved after decentralization implying that forest resource governance improved in terms of rule of law, transparency, accountability and equity. The study concluded that institutional changes involving community participation in forest resource governance is one of the best options in improving forest resource governance, hence sustainable forest management.