Background: Contraceptive use reported to avert more than 1 million maternal deaths in Sub-Saharan Africa due to decline in fertility rate and thus help to achieve MDG 4 and 5. Therefore, this study aims to determine the prevalence of modern contraceptive use, describe common methods used, source of methods and factors that predict contraceptive use among women of reproductive age (WRA) in Arusha City and Meru District Council (DC) in northern Tanzania. Methodology: The study is based on data from a cross-sectional survey conducted from January – May 2018. The study enrolled women aged 16-44 years from five selected wards in each district. Interviews were conducted at participant’s homes using electronic data collection system. Descriptive and analytical statistics were used to analyze the data.Results: A total of 3,938 women were enrolled, of whom 3,658 were sexually active at the time of survey. The mean age of 3,658 women was 30.5 (SD 7.3) years. The prevalence of modern contraceptive use (mCPR) was 47%, with no significant difference between Arusha City (47%) and Meru DC (44%). Implants (26.9%), injectables (21.5%) and pills (13.0%) were three of the common contraceptives currently used among the users. Public health facilities were the main source (72.6%) of contraceptive methods. Married/cohabiting women were significantly using modern method of contraceptives compared to single women (Adjusted Prevalence Ratio [aPR = 2.1) as were women with two or more children than others (aPR=1.5). Cost, distance, and time due to busy schedules were key challenges to access family planning (FP) services as reported by the women. Conclusion: Nearly half of WRA in the two districts were using modern contraceptives. Implants have become the most common method of contraceptives than injectables and pills. Health management teams in the two districts will need to come with strategies for improving use of other modern FP methods and improving community-based availability of contraceptive services to contribute in improving mCPR to the 60% target.