Tanzania government through Ministry of Health Community Development Gender Elderly and Children has introduced Improved Community Health Fund (iCHF) scheme following operational and financial management challenges which were facing the previous Community Health Fund (CHF) scheme. This study assessed clients’ awareness and access to services in iCHF in Masereka village Lushoto District. A cross-sectional survey design was adopted to collect data using questionnaire. The study used stratified random sampling to select 104 head of households from four hamlets namely Masereka, Ludende, Tanda and Yatanga. Descriptive statistical analysis was applied using SPSS version 16 to generate mean, standard deviation, frequencies and percentages. Results showed that few community members are aware of the criteria used to enroll new members to iCHF (50.5%) and other few community members are familiar with health facilities accredited to iCHF scheme (44.7%). The study also revealed that the quality of healthcare services provided through iCHF scheme are perceived to be reliable in respect to fast treatment (Mean score=3.5, SD=1.165), availability of medicines (Mean score=3.3, SD=1.211), accurate medical examination (Mean score=3.4, SD=1.327), accurate treatment (Mean score=3.1, SD=1.336) and easy contact with health workers (Mean score=3.6, SD=1.148). More findings showed that in comparison to health services provided through iCHF accredited health facilities, the community perceived that the costs of enrolment to iCHF is relatively lower (Mean score=3.5, SD=1.066), premium is relatively fair (Mean score=3.8, SD=1.104) and health staff provide good care to clients (Mean score=3.5, SD=1.126). Community members who are non-iCHF members reveal that their reasons for not being enrolled to iCHF were still prefer and trust in traditional medicine (59.2%), and other community members (26.3%) do not afford the iCHF premium. The study recommends that iCHF management and health sector development partners such as Tanzania Social Action Fund (TASAF) and non-governmental organization should increase their efforts in providing clear information to the rural communities and support poor households to enroll to iCHF especially in Masereka village. Clear information and support can motivate many households to enroll to iCHF and leave away their high dependence on traditional medicine which usually lack clear scientific basis in prevention and treatment of diseases.