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The objective of this paper is to apply principal components and factor analysis techniques in assessing factors associated with fertility differentials in Tanzania. The study utilized secondary data from 2010 Tanzania Demographic and Health Survey (2010 TDHS) dataset. Three factors were identified as the main factors associated to fertility differentials in Tanzania. The first factor was woman’ education and awareness, the second factor was woman’ demographic characteristics and the third factor was woman’ economic status. Among those factors, woman’ education and awareness was found to contribute more than all other factors in explaining fertility differentials in Tanzania. The study concluded that, in order to attain a desirable fertility level in the country, woman’ education especially on the issue of family planning needs to be improved.