A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Science in Human Resource Management of Mzumbe University.The objective of this study was to identify the impact of rewards on employees’ job satisfaction using the case of Mwanga District Council. The specific objectives (focus) were to establish the relationship between rewards (extrinsic and intrinsic) and job satisfaction, to find out employees’ perception on the applicability of both extrinsic and intrinsic rewards and to investigate employees’ reactions with regard to effort spent on their job where there are no rewards. Primary data were collected using questionnaires and interview guides and secondary data were collected using documentary sources. Stratified and convenience sampling techniques were applied and the actual sample size was 80 respondents. Findings show that, there is a direct association between rewards and job satisfaction, management offered rewards but based more on financial rewards, best performers reacted by resignation, absenteeism, low commitment, reduce morale of working when missed rewards at their work place. This study found that there are no transparency in rewards provision, rewards do not much with the work done, delay of reward provision, shortage of funds for motivation, absence of motivation policy and time value of money not considered. The study recommended what should be done to rectify the challenges including training supervisor on motivation skills, timely provision of rewards, transparency, uses of both financial and non financial rewards, consideration of time value of money and employees participation to identify and rewards best performers.