The current study analyzes the impact of financial liberalization on economic growth in Tanzania. It focuses on the inability to attain targeted economic growth. The study employed time-series data spanning from 1970 to 2017. The error correction mechanism was used for estimation. The study contributes to the literature by analyzing short- and long-run effects using financial liberalization index as a proxy of the financial reform in Tanzania. The study reveals that financial liberalization is positive and statistically significant, thus spurring economic growth in the long run, though in paucity of effect. Therefore, policymakers are advised to strengthen more effort on financial liberalization policies to attain the targeted growth level.