Mt. Merapi is one of the most active volcanoes in the world and located at 30 km north-northeast from Yogyakarta, Indonesia. A large amount of sediment supply from Mt. Merapi area is serious threat to people, but works also as an important natural resource for people. Thus, the sediment from the volcanoes has given both advantages and disadvantages. Sustainable sediment management is urgently required to mitigate the sediment disasters and provide the people with benefits. It is considered that sand mining activity and installation of groundsills can be used as one of the tools to control the sediment disasters and the regional development. In this study, we discussed the basic management concepts of sand mining and groundsill installation for such sustainable sediment management.