Fishery in Zanzibar play a significant role in the economy for income, food security and employment status. Many inhabitants from coastal areas of Zanzibar engaged in fishing activities for income and subsistence need. Majority of the fishers in Zanzibar are poor. They are engaged in fish catch in inshore areas using traditional fishing boats and gears. Fisher's income has been gradually reduced due to declining fish catch which is attributed to poor fishing technology, use of non-motorized small fishing vessels and overfishing. The aim of this study is to investigate how capital assets contribute to the household income and wellbeing of small-scale fishers in Zanzibar. Data used in this study obtained through face to face interview with 226 respondents. The regression results indicated that financial capital, human capital, social capital and natural capital have significantly contributed to the income of fisher households in Zanzibar. The access of assets play a very significant role in the poverty reduction in coastal areas in Zanzibar. The government may prioritised to invest in fish market facilities and improve some services including social network, education, credit facilities for increasing income and reducing poverty to the fishers in the islands of Zanzibar.