Dissertation ( MA Education)This study intended to assess the literacy skills development among rural primary school pupils in Kongwa District in Tanzania. Socio-cultural Theory guided this study. Qualitative approach was predominantly used in data collection by employing the case study design. Data were collected through semi- structured interviews, open –ended questionnaires, focus group discussion (FGD), observation and documentary review. The sample included 70 informants comprising of head-teachers, Teachers, pupils, Ward Education Officer (WEOS) and District Primary Education Officer (DEO). The findings indicated that majority of the standard seven pupils were able to read and write the given text. The strategies that were commonly used by teachers in literacy skills development were; Remedial teaching, use of teaching materials, participatory methods, helping slow learners, reading clubs and talking class. The findings indicated further that the literacy skills development faced the challenge of the shortage of teachers, negative perception of the society towards education, problem of infrastructure, the use of mother tongues, congestion in the classroom, pupil absenteeism and long distance from home to school. It is recommended that in order to maintain positive results on literacy skills teachers will need frequent seminars to upgrade themselves in new pedagogical knowledge and skills and maintaining collaboration between teachers and parents.