A Dissertation Submitted to Mzumbe University-Dar es salaam Campus College in Partial Fulfillment of the Requirements for Award of the Masters of Science in Procurement and Supply chain management (MSc. PSCM) of Mzumbe UniversityAssessing the challenges facing e-Procurement application in upgrading Public Procurement in Tanzania, is based on the view that the e-business paradigm has created a gigantic opportunity for firms to consolidate their procurement processes through application of Electronic Procurement. E-procurement has now opened new horizons for managing and operating businesses and it has given the stakeholders many options to make appropriate decisions on the procurement activities. Also enabled fast and low cost communications between businesses and their associate partners, they have increased the abilities of users to carry out their business activities and maintain commercial relationships in the most cost effective and efficient ways, (Gardenal, and Francesco, 2005). The assessment of these challenges towards implementation of e – Procurement in upgrading Procurement processes using MSD as a context, broadly focuses on a number of parameters ranging from the role of e – Procurement application in upgrading Public Procurement Process, an evaluation of challenges hindering application of e – Procurement and an assessment of the management attitudes and practices in managing and controlling the implementation of e – Procurement application within organizations and in this context the MSD. Using a case study approach, both from a quantitative and qualitative perspective, a systematic selected sample size of Fifty (50) respondents was used for data collected through personal interviews, observations, questionnaires, alongside an examination of various records. The key findings emerging from analyzed data has suggestions indicating that poor technological infrastructure, risks associated with e-Procurement application, shortage of technical knowhow, incapable suppliers, changes of responsibilities, shifting the mind-set of people, shortage of technical support, security of data transaction, poor network infrastructure and unstable power supply are the major challenges that facing e-procurement application in upgrading Public Procurement in Tanzania. Basically, a key observation from these findings, suggest that the key challenges facing e-Procurement application in upgrading Public Procurement have significantly undermined the effective application of e-Procurement.