The U.S. has historically enjoyed cordial relations with Tanzania. A new chapter in that relationship was launched on August 7, 1998, when terrorists bombed the U.S. Embassy in Dar es Salaam. This act horrified Tanzanians and Americans alike and also drew condemnation from around the world. In the aftermath of the bombing, relations between the U.S. and Tanzania became even closer, and cooperation broadened to include areas such as anti-terrorism and law enforcement. President Benjamin Mkapa visited the U.S. in September 1999 with a delegation of business executives, reflecting the increased level of cooperation on trade and investment issues and Tanzania's commitment to economic liberalization. The U.S. Government provides assistance to Tanzania to support programs in the areas of health, environment, democracy, and development of the private sector. The U.S. Agency for International Development's program in Tanzania averages about $20 million per year.

The Peace Corps program, revitalized in 1979, provides assistance in education through the provision of teachers. Peace Corps also is assisting in health and environment sectors. Currently, about 82 volunteers are serving in Tanzania.

The U.S. Embassy in Tanzania is located on Old Bagamoyo Road, Dar es Salaam. The consulate on Zanzibar was closed on June 15, 1979.