Background: Three dairy farms were investigated for occurrence of retained placenta and subclinical mastitis, and the economic impacts attributable to the conditions. Reproductive performance data from 1169 calvings of dairy cows for five consecutive years spanning from 2014 to 2018 were used in this study. A total of 167 cows were screened with the California Mastitis Test (CMT), and udder quarters with CMT score of ≥ 3 (scale 1–5) were milk sampled for culture and final bacteriological identification. Results: Overall prevalences of subclinical mastitis and retained fetal membranes were 35.93% and 10.35%, respectively. The prevalence of bacterial isolates at animal level was 38.92%. Individual bacteria prevalence rates were 66.15% for Staphylococcus aureus, 13.85% for Escherichia coli, 6.15% for Bacillus spp., 6.15% for Streptococcus agalactiae and 7.69% for none typed microorganisms. Overall loss from subclinical mastitis was estimated at 10,603,800/= Tanzanian shillings (Tshs) equivalent to USD $ 4,700 with major losses (81.75%) attributable to the production loss followed by treatment expenditure (18.25%). Average loss attributed to mastitis per quarter was estimated at 49,320/= Tshs (USD $21.5). Retained placenta resulted in an increase (P<0.05) in the period from parturition to conception (148.7 vs. 96.0 days), number of services per conception (2.9 vs. 1.9) and calving interval (434.7 vs. 374.0 days). Conclusion: These findings point out to the economic importance of subclinical mastitis and retained fetal membranes in the dairy industry. This calls for improved milking hygiene, proper attention to health of mammary glands, regular screening tests and application of biosecurity measures as intervention strategies to lower the prevalence of subclinical mastitis and minimize the spread of pathogens in dairy farms. Since retained fetal membrane is an important problem causing great economic losses, appropriate control measures have to be instituted including cow comfort, proper immunization and careful nutritional management (mineral supplementation), particularly during the transition period.