Tanzania proudly ranks the third in terms of number of livestock among Sub-Saharan countries. Livestock-related activities contribute about 5 to 7.4% to Tanzania’s Gross Domestic Product, and about 30% of agricultural Gross Domestic Product. Of all livestock in Tanzania, 99% is raised by small-holder farmers and pastoralists while the commercial, mainly ranching, constitutes only 1%. The “traditional” agro-pastoral and pastoral systems alone constitutes about 90% of the nation’s livestock herd. Traditional pastoralism is a potential source of raw material for Tanzania meat processing industrial sector, an important driver of achieving the Tanzania Vision 2025. The objectives of this review paper are: to evaluate the contribution of pastoralism to the national economy; to describe the characteristics of pastoralist systems; to describe the characteristics of pastoral grazing resources; to evaluate the political, ecological and environment factors that promote and constrain pastoralist; and propose appropriate grazing model and possible means to unlock potential of traditional pastoralism to sustainably contribute towards achieving middle income country by 2025. In general, the mobile pastoralism system, common in the dry, marginal lands and harsh environment has endured for centuries under strategies such as mobility, flexibility, diversity and reciprocity. Stereotypically, traditional pastoralism in Tanzania is perceived as archaic, unorganized, environmentally destructive and unproductive. Livestock Policy of Tanzania recognizes importance of the traditional pastoralism in the national economy although it explicitly favors commercial sedentary livestock system. There is a need to change the negative attitudes among planners towards mobile pastoralism. All the strategies that have enabled traditional pastoralism to persevere for centuries in the harsh environment should be promoted. In addition, other modern strong institutions should be innovated without affecting the traditional pastoralism base.