Using collected data (questionnaires) information the study established the contribution of microfinance institutions in women development through small scale business support in Tanzania. It investigated the alternative that the microfinance institution employ to help women to overcome constraints or problems. The aim of this research study was to determine how microfinance institutions contribute toward women development through small scale business support in Tanzania by using the three main variables were chosen. The three main variables that were chosen are loans, training and formal education. Quantitative and qualitative methods of inquiry were used comprising mainly questionnaire and personal interview. The acquisition of past and current literature with up-to-date views of the topic concerned formed an integral component of the overall analysis by using STATA 9.1. The study found out that microfinance institutions played a leading role in helping women to develop by extending credit to them. This is because more women were able to become financially sound, a condition that enabled them to acquire good furniture, build good houses and pay school fees for their children. They were also able to interact with more prosperous business people through which they were able to acquire more acumen. However, despite this there are problems that hampered women’s development. These included high levels of illiteracy among women, high rates of interest charged by micro-finance institutions, lack of proper training pertaining to business and the concentration of microfinance institutions in the cities to the neglect of the rural areas where a large proportion of women live. The study recommends that microfinance institutions offer more training to women, lowers interest rates so that more women are able to access credit. Other recommendations include giving training to men so that they understand the importance of the credit that women acquire from microfinance institutions. The study however concludes that the role of microfinance institutions in women development, particularly NMB is indisputable.