Groundnut is among the most important crops for smallholder farmers in Tanzania, providing both food and income for households. Groundnut is a nutritious source of fats, protein, carbohydrates, vitamins, and minerals for human consumption and parts of the crop can be used for livestock feed. This study identified factors which contribute to the stagnation of groundnut production among smallholder producers in Urambo district of Tabora region in Tanzania. Quantitative data were collected using a survey questionnaire administered to 400 smallholder farmers. Multistage, simple random and purposive sampling was used to select participants. Qualitative data were also collected through focus group discussions, key informant interviews, and personal observation. A multivariate regression technique was used to examine socio-economic factors influencing smallscale groundnut production in the district.