Mangroves are tidally dependent wetlands that are influenced often by alterations in hydrology associated with coastal developments that impact their distribution, health, and function. Alteration in frequency, depth, duration, and seasonality of tidal inundation can lead to changes in forest condition, although these stress-adapted ecosystems may persist for many years before succumbing to mortality. However, arresting this decline through hydrological restoration can significantly improve ecosystem condition and the provision of ecosystem services. Much of the mangrove resource on Marco Island, Florida, USA, is unhealthy if not already dead or dying due to soil structural shifts, permanent flooding, and peat compression resulting from road construction, tidal restriction, and delays in restoration actions. In order to determine the impact of restricted hydrology on these mangrove forests, we examined soil surface elevation change and soil carbon (C) and nitrogen (N) content along a degradation gradient and within a small-scale, community-driven restoration area. Using a space-for-time substitution approach, we found that the restoration of regular tidal inundation to Marco Island mangroves has the potential to increase C sequestration in surface soils alone from 0 to 360 g C/m ² /yr (3.60 Mg C/ha/yr) and increase N sequestration from 0 to 24 g N/m2/yr (0.24 Mg N/ha/yr). Additional sequestration benefits would be realized with aboveground forest recovery. Successful mangrove restoration trials and small community-based projects such as those on Marco Island could serve as a model for larger efforts and empower stakeholders and policy makers to restore other wetlands and better manage coastal carbon.