This research paper investigated the awareness, the use and factors hindering the adoption of web 2.0 tools for academic knowledge creation and sharing in higher learning institutions in Tanzania. Structured questionnaires were used to collect data from the targeted respondents (i.e. lecturers and students). Findings from the study revealed that majority of both students and lecturers are very much aware of the different web 2.0 tools, however the academic use of web 2.0 tools is still very limited as opposed to developed nations. This implies that adoption and use of web 2.0 tools still have a long journey before holding its ground in higher learning institutions in Tanzania. Factors hindering the adoption and educational use of web 2.0 tools were established in the study whereby the critical issue identified was the lack of institutional support and strategies to use web 2.0 tools among the stakeholders. It was therefore recommended that institutions formulate policies and strategies that will guide and support the adoption and uses of web 2.0 tools in the higher learning environment because both students and lecturers were very much interested to learn and adopt web 2.0 tools for education use.