Special education was introduced in Tanzania Mainland in 1950 by the Church Missionary Society. Despite its long history in the country, not many policies have clearly stipulated the need for special and inclusive education. This paper succinctly and systematically evaluates various educational reforms and policies in Tanzania, and points out some successes and embedded challenges in the development of special needs and inclusive education in Tanzania. To analyze clearly the current situation of special and inclusive education in the country, the Peter’s model and cases of some identified schools for exceptional students are used. The analysis has indicated an evolution from special to integrated and later on to inclusive education, which has led to an apparent increase in the number of schools and subsequent relatively higher enrollment figures for children with special needs. Despite this evolution, Tanzania has a long way to go, when compared to other countries in effectively achieving the provision of education to exceptional individuals. Finally, towards a new era of special and inclusive education in Tanzania, various recommendations are offered