In Tanzania, pure grasslands cover is estimated to be 60,381 km2, about 6.8% of the total land area, and is distributed in different parts. These grasslands are diverse in dominant grass species depending on rainfall, soil type, altitude, and management or grazing system. They support livestock and wildlife distributed in different eco-tomes and habitats of the country. The potential of grasslands for the livelihood of rural people is explicit from the fact that local people depend solely on natural production to satisfy their needs for animal products. Analysis of grazing lands indicated that livestock population, production of meat, and milk from grasslands increased. But the wildlife population, when considered in terms of livestock equivalent units (Large Herbivore Units) showed a declining trend. The contribution of grasslands to the total volume of meat produced in the country showed a declining state, while milk production showed a slight increase. This situation entails a need to evaluate the grasslands of Tanzania to ascertain their potential for supporting people’s livestock, wildlife, and livelihood. This study concluded that more research is needed to establish the possibility of grasslands to keep large numbers of grazing herbivores for sustainable livestock and wildlife production.