For the past three decades, land formalization has been advocated as a means of improving access, use and management of land in developing countries. Proponents assert that formalization reduces land use conflicts, is a means for collateralization and enhances productivity of land. It is on this basis that customary land titling has been also implemented in Tanzania since 2004. Nevertheless; the practices and operations of customary land titling in Tanzania has received diverse success stories and defaults. This paper assesses the pros and cons of land formalization in Tanzania. The paper is based on the study carried out in Babati and Iringa District Councils between 2016 and 2018 in Tanzania. The study adopted a cross-sectional design. Data collection methods included household questionnaire where 341 respondents were engaged; 9 focus group discussions (FGDs) and interview of 49 key informants. Descriptive analysis used frequency, cross-tabulation and measures of central tendency. Content analysis was used to process and analyze qualitative data gathered through interviews and FGDs. The results indicate that land formalization has both positive and negative implications on industrialization in Tanzania. On the positive side, it enhances certainty and confidence to investors, enhances access to land and minimizes land use conflicts. The negative side of land formalization manifests itself through the weaknesses of the formalization process itself. The process is characterized by poor technology resulting into countless errors in the CCRO outputs, it is top-down, donor dependent and small number of CCROs produced nationally. These present formidable obstacles to industrial development by discouraging investors.