Dissertation (MA Business Administration)The main objective of Microfinance institution in Tanzania is the provision of financial services to the low earner income who fail to acquire funds from banks. This study focused on Women empowerment through microfinance institutions. The study aimed at examining the contribution of microfinance institution to Women empowerment specifically to identify the policies or regulations guiding women empowerment, to assess the microfinance funding and utilization of funds. Also to assess to what extend the microfinance institutions has contribution to Women empowerment and finally to determine the challenges which Women face through microfinance. The study adopted a case study in which two microfinance institutions SIDO and PRIDE located at Dodoma municipality were visited. The information was obtained using structured and unstructured questionnaire, personal interview, observation and documentary review methods. 84 respondents were successfully filled questionnaire which was taken as actual sample for analysis and data were analyzed using SPSS. The findings show that Microfinance Institutions has a positive influence to the Women empowerment; Profit from their business contributed them to acquire assets and other valuable resources. Factors such as lack of modern technology on business management, limited amount of capital, policies and weekly payments were found to be critical during implementation. It was recommended for women training and development on how to manage their business for sustainable development and the identified critical challenges to be solved. Also further research is required on the same study with different research design such as survey research design, Women empowerment training and development, sustainable development on Women empowerment.