Dissertation (MSc Nursing Education)Background: Skills laboratory is one of the most important components in nursing education as it bridges the gap between theory and practice among nursing students. Objectives: Assessment of skills laboratory implementation readiness and associated student’s clinical performance on neonatal resuscitation among diploma nursing schools in Tanzania. Methodology: The study employed quantitative approach with cross-sectional research design. The sample size was 384 students from four regions including: Dodoma, Manyara, Morogoro and Mbeya. Multistage sampling was used to select zones, regions, and district; while proportional sampling and simple random sampling were used to select students in respective schools. Data were collected through self-administered questionnaires, standardized checklist and objective structured practical examination checklist and analyzed by statistical packaged for social sciences. Result: the study had 384 participants with 56.0% female and 46% male. Findings indicate that 55.6% school had inadequate requirement in terms of furniture, models and infection control requirements. 71.1% of the respondents had good performance on neonatal resuscitation with the mean score of 60.3 %. About 60.9% had positive perception toward the use of skills laboratory, and it was found that there is an association between Sills laboratory implementation readiness and student performance on neonatal resuscitation with (OR=3.822, CI: 2.306 -6.333, P= 0.000) and (AOR= 0.260, CI: 0.119-0.337, P= 0.001). Conclusion: Most of nursing schools had limited requirements for skill laboratory implementation. The study recommends that, the government and non-government institutions should provide skill laboratories with adequate resources for better performance of students