Mangroves have various functions and benefits that are important both directly and indirectly. As an economic function, mangroves can be used as a source of food and understanding of the Coastal community. Coastal community poverty is still a national strategic issue, therefore this is one of the solutions to the problem.The purpose of the research was  to analyze the effect of mangrove forest management on the economic development of the coastal community on Madura Island. Sample in this study came from four districts in Madura, namely Bangkalan, Sampang, Pamekasan and Sumenep, which consisted of water management communities, Related Offices, Environmentalists, Academics, NGOs / Institutions, and CSR totaling 170 respondents. Data analysis tool with SEM Warp Partial Least Square method. The research result  that mangrove forest management has a significant positive effect on economic development. Improving economic development, in this case, was increasing income, new employment opportunities, and mangrove sustainability.