In one aspect, a system for monitoring operational parameters associated with a tillage implement may include a first sensor configured to detect data indicative of a first distance between an implement frame forward of a ground engaging tool and a soil surface prior to engagement of the soil by the tool. The system may also include a second sensor configured to detect data indicative of a second distance between the frame aft of the tool and the soil surface following engagement of the soil by the tool. A controller of the system may be configured to determine a soil density change caused by engagement of the soil by the tool based on the first and second distances. Furthermore, the controller may be configured to determine a penetration depth of the tool based at least in part on the determined change in the soil density.