In military battlefield domain, decision making plays a very important part because safety and protection depends upon the accurate decisions made by the commanders in complex situations. In military and defense applications, there is a need of such technology that helps leaders to take good decisions in the critical situations with information overload. With the help of multi-sensor information fusion, the amount of information can be reduced as well as uncertainties in the information in the decision making of identifying and tracking targets in the military area.   Information fusion refers to the process of getting information from different sources and fusing this information, to supply an enhanced decision support. Decision making is the very core and a vital part in the field of information fusion and better decisions can be obtained by understanding how situation awareness can be enhanced. Situation awareness is about understanding the elements of the situation i.e. circumstances of the surrounding environment, their relations and their future impacts, for better decision making. Efficient situation awareness can be achieved with the effective use of the sensors. Sensors play a very useful role in the multi-sensor fusion technology to collect the data about, for instance, the enemy regarding their movements across the border and finding relationships between different objects in the battlefield that helps the decision makers to enhance situation awareness.   The purpose of this thesis is to understand and analyze the critical issue of uncertainties that results information in overload in military battlefield domain and benefits of using multi-sensor information fusion technology to reduce uncertainties by comparing uncertainty management methods of Bayesian and Dempster Shafer theories to enhance decision making and situation awareness for identifying the targets in battlefield domain.