This study is a research on the Challenges Facing Legal and Institutional Frameworks on Recognition and Enforcement of Foreign Arbitral Awards in Tanzania. The study explores the major challenges facing parties when looking for enforcement of foreign arbitral awards in national courts/local courts. The objective of the study was to analyse the legal and institutional challenges facing recognition and enforcement of arbitral award in Tanzania; by assessing whether the laws and institutions governing international commercial arbitration are effective. In conducting this study, the researcher employed two methods: documentary review and field research. The researcher carried out an intensive review of both primary and secondary data relating to historical background to the problem and methods of recognition and enforcement of foreign arbitral awards in Tanzania.The major problem facing the enforcement was found to be on arbitration policy formulation, laws and courts responsible for enforcement. That there has not been effective coordination among the stakeholders and the legislature has been lagging behind to amend the law and domesticate international instruments. That the government and legislature should ratify and domesticate in its arbitration law the ratified international convention so as to ensure effective settlement of commercial disputes. That the Tanzanian Government should create new institutions and promote existing local arbitration institutions like TIA & NCC so that they can work effectively in facilitation and promotion of arbitration and other ADR forms of dispute resolution.