This paper outlines poverty alleviation policies in Tanzania from 1980 to 2013. Trends in poverty and challenges faced by the country in reducing poverty have also been highlighted. Poverty-reduction policies that have been implemented in Tanzania can be categorised into three policy clusters. The first cluster covers policies that reduce income poverty and increase economic growth. The second cluster focuses on poverty alleviation policies that increase access to basic services such as education, health, water and sanitation, and social protection. The third cluster covers institutional capacity building, accountability and governance issues. Despite all the policies that have been implemented, Tanzania – like other emerging economies – still faces a number of challenges related to reducing poverty