Except for commercial seaweed farming that employs 15,000 – 20,000 people, aquaculture in Tanzania is primarily small-scale rural initiative characterized by small ponds with size ranging from 150 to 500 m2. About 17,740 people are involved in aquaculture with 14,740 practicing freshwater fish farming and 3,000 in mariculture. Current cultured species include tilapia, catfish, milkfish, trout, crabs, pearl oysters and prawns. The government through the Ministry of Livestock and Fisheries Development established a Directorate of Aquaculture Division to strengthen aquaculture. The directorate has already put in place a National Aquaculture Development Strategy (NADS). It is also strengthening the existing freshwater hatchery centres particularly the ones which produce Nile tilapia and catfish fingerlings in Morogoro Region. During the 2000s there have been improvements in the aquaculture sector in terms of training and research. During this period Bachelor degree programmes were initiated at Sokoine University of Agriculture and the University of Dar es Salaam. Also a Diploma Programme was initiated at Mbegani Fisheries Development Centre. The University of Dar as Salaam, Sokoine University of Agriculture, and Tanzania Fisheries Research Institute have been undertaking research both on-station and on-farm in collaboration with farmers and some Non Governmental Organizations. However, despite these initiatives, the sector is still facing several challenges including unavailability of quantity and quality seed and feed, difficult marketing environment (especially seaweed), inadequate credit facilities and poor extension services. In this article the current status and development of aquaculture in Tanzania are reviewed. Suggestions on the way forward for improving aquaculture in the country are also given.