Dissertation (MA Development Studies)Solid waste management is one of current development challenge facing fast growing towns in developing economies resulting in human health hazards and environmental degradation. Solid waste however has been regarded as an urban disgrace. This study therefore aimed at examining the contribution of solid waste trade to household livelihood in Tanzania. Cross-sectional research design was used by the researcher to study variables in their natural way. The researcher used individual interviews, Focused Group Discussion and Observation methods to collect primary data as well as documentary review method for secondary data collection. The information collected was coded and analyzed by using descriptive statistics where frequencies and respondents’ percentages were presented in charts, tables and histogram. This study found that solid waste trade contributes to household livelihood. Like any other business however, the trade faces a couple of challenges ranging from lack of working capital, operating with inadequate business skills, low level of government investment in solid waste recycling and management to low levels of community awareness on solid waste management. These challenges make solid waste remain informal and at subsistent level. It is therefore concluded that, joint venture in solid waste trade is a strategy to improve this trade in the study area. Suggestions were put forward for the government and private sector to improve the sector and these include; allocation of designated business venues, provision of soft loans, capacity building in business skills and developing mechanisms to regulate the products’ prices.