<p>This study examined the extent and factors influencing the commercialization of milk from indigenous dairy cattle during the dry season. The 2019–20 National Sample Census of Agriculture (NSCA) survey data in Tanzania were used for the study, which employed the Household Commercialization Index (HCI) to assess the extent of commercialization and the Tobit model to identify drivers of commercialization. The findings show that, despite the high demand of milk from indigenous dairy cattle, most smallholder farmers are less commercialized. Additionally, the results of the econometric model showed that access to credit, female customary rights, access to livestock extension services, annual milk consumption, frequency of milking, and annual days for milking cows all had a statistically significant impact on the commercialization of milk from indigenous dairy cattle during dry seasons. To produce a marketable surplus and raise their level of living, smallholder farmers should be encouraged to increase the productivity of milk from indigenous dairy cattle. Additionally, it is important to develop intervention techniques that expand women’s access to resources, livestock extension services, improved marketing channels, and financing access to effectively invest in better technologies and improved inputs. A balance between milk production and marketing should also be established by optimizing milking schedules while taking seasonal variations and the dietary requirements of the cattle into consideration. Finally, promoting efficient milk consumption habits and effective seasonal excess control can enhance commercialization.</p>