The overuse of chemical fertilizers in agricultural lands is causing environmental degradation and loss of soil fertility. It has negative impacts on hydrology and ecosystem health. Transitioning to organic farming practices such as vermicomposting can improve soil fertility and ecosystem health and reduce the negative impacts of chemical fertilizers. By providing examples of sustainable land and ecosystem management in Madhya Pradesh and Chhattisgarh, the World Bank-funded Ecosystem Services Improvement Project sought to assist the National Mission for a Green India. Vermicomposting was chosen as one of the activities under this project to enhance land productivity and improve ecosystem health. It involves earthworms converting waste into compost, improving soil quality, preventing erosion, and increasing crop productivity. Vermicomposting units were set up in 5022 households in 34 villages in Madhya Pradesh and 35 villages in Chhattisgarh, benefiting 15,066 individuals. Farmers, particularly women, actively participated in vermicomposting, leading to increased crop production and savings of on average at INR 3035/− per household per year due to a cutdown on chemical inputs. The project emphasized the importance of healthy soil for sustainable land productivity. Overall, vermicomposting proved to be a nature-based approach that promotes healthy ecosystems and land productivity. The article highlights the success of the practice of vermicomposting for improving land productivity, including the challenges faced and the strategy used for its successful implementation and sustainability.