Using data from the Tanzania National Panel Survey (TZNPS), this paper provides new evidence on the state of social exclusion in Tanzania. Using both descriptive and econometric analyses, results show that, social exclusion in Tanzania is relatively high. Over the period of study, about 98% of the sample have experienced social exclusion at least once over the entire period. It’s only about 4% of the population under study that has never experienced social exclusion over the period under study. Regardless of this high proportions of individuals experiencing social exclusion, results also show that not all individuals are excluded through their entire period. This suggests that, there is some degree of movement between individuals who become socially excluded and those who move out of social exclusion in Tanzania. Results suggest that social exclusion dynamics in Tanzania is to a large extent triggered by observed characteristics (economic adversities) as compared to unobserved heterogeneity. These results can help to formulate and improve policies which are directed toward poverty reduction and social exclusion. In particular, it can assist in the process of proposing policies which will both help to get people out of social exclusion or prevent people from being socially excluded.