A Dissertation submitted in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.Although innovation is a vital aspect of sector in furniture manufacturing SMEs worldwide, in Tanzania, there is a slight understanding of how these innovations bring impact to the manufacturing SMEs' performance since nowadays customers prefer imported furniture than the local furniture. The understanding of the impact of innovation on the performance of furniture manufacturing SMEs is very crucial as the owners or managers of SMEs can be motivated to apply it sincerely in their business to increase their business performance. The research aimed to investigate the effect of innovation on the presentation of furniture manufacturing SMEs in Dar es Salaam. The expressive study design with the quantifiable approach was used to investigate the impact of modernisation on the presentation of furniture industrial. The targeted populace for this research comprised registered furniture manufacturing SMEs in Dar es Salaam. The study applied a purposive sampling to choose a sample size of 96 participants. In this study, both descriptive and inferential analyses were used in the analysis of data. The descriptive analysis was conducted by indicating frequencies and percentages while the inferential analysis was performed through multiple regression to indicate the connection among independents (product, process, and market innovation) and the outcome variable (SMEs performance). Findings from the multiple regression analysis show that product, process, and market are all positive statistically significant. Moreover, findings depicted that market innovation has less influence on the performance of SMEs compared to process and product innovation. This shows that market innovation has minimum influence on the performance of SMEs compared to product and process innovation in the business. This displays that SMEs should put more effort into product and process innovation. The study recommends that SMEs to effectively attain high-quality product innovation, government management must create a supportive business environment. Also, the Government of Tanzania, private institutions and furniture firms should assist the diffusion of competent and effective technology and training, which will guarantee the expertise in the domestic furniture industry where SMEs can have fullaffordability of making competent furniture not only in the local market but also in the worldwide market.