This paper review the experience of Tanzania in implementation of structure adjustment program from the mid 1980`s, and the impact of SAP in poverty alleviation. It begins with a review of the reason why SAP comes into existence in Tanzania, with an examination of the specific reasons for the failure of SAP in the country. On the second hand the paper examine how the process of SAP is undertaken by countries implementing the program in Africa. Finally the paper attempt to suggest some factors if implemented will help to redress the adverse effects of SAP in the country. the paper also pinpoint that it is difficult to reconcile domestic problems through resorting to international requirement, like wise the idea that the state has nothing to do in the economy, this is a radical view which even the IMF and World bank has come to realize.