The forest cover area in the Sudan decreased from 30% in 1990 to 26% in 2000. The survival of Sudan's natural resources has become a landuse, natural vulnerability and a socio-economic issue. This study focuses on Smallholder farmers (SHFs) who cultivate on small parcels of land and also depend on natural resources crucial to their survival. This study probed for data, surveys and views that provided a link between drought/desertification and the utilization and management of natural resources on one hand, and the impacts on livelihoods and the environment on the other. The principal objective of the study was to assess the level of involvement of SHFs on the adoption of forestry practices and to examine the role of natural resources critical to livelihood strategies during drought. A cross-sectional survey was conducted with SHFs from two villages in Kosti province viz; Gadid and El Mileah through interviews using questionnaires, group and focus group discussion and Participatory Learning and Action (PLA) methodology. Descriptive statistics was used to analyze the data collected. The results of the study revealed that, drought limits plant growth and the productivity of natural resources. However, most SHFs have adopted a range of management strategies through an integrated land use practice to ensure improved yields.