The paper discusses contribution of dagaa Rastreneobola argentae fishery to Tanzanian economy. It uses data from two studies conducted in Lake Victoria as well as literature retrieved from Fisheries Division and other institutions. Results indicate that dagaa fishery generates an average monthly income over $150 to individual fisher/trader, provided employment and brought in substantial foreign exchange over $2 million annually. This has enabled government to improve road networks, health care and education systems within the dependent communities. However, the fishery is still faced with inadequate technologies for processing and value addition, poor local markets for fish and little exploitation among others. In conclusion, dagaa is an important resource among the fisheries of Lake Victoria. Improved handling and processing and promotion of economic value are likely to increase benefits to the riparian communities as well as sustaining already depleted Nile perch stock.