The MSMEs have attained a significant group in terms of their number, employment investment, output and exports. However, these units suffer from various problems. In the light of this background, the present study has been taken up to highlight the problems of MSME units of Guntur district. In Andhra Pradesh as it is learnt that they have been suffering from many problems on several fronts such as production, marketing, labour, finance etc. In fact, the performance of these units has been for better had they been free from these problems. The study is largely based on the primary data collected from MSMEs of different industrial Estates and Auto Nagar of Guntur District. The study has been divided into seven chapters. The first chapter deals with the role development and problems of MSME Sector. The second chapter describes the objectives of the study and the methodology followed. The third chapter outlines the growth and performance of MSME in the Indian scenario, Andhra Pradesh Scenario and Guntur scenario. The fourth chapter presents the sickness of MSMEs. The fifth chapter presents in a case study on development of MSMEs in Guntur District. The sixth chapter deals with the problems of sample needs in the Guntur District. The seventh chapter deals the findings and conclusions drawn from the study, besides suggestions made to MSMEs, policy makers and financial institutions to enable them play their respective roles in resolving the various problems faced by MSMEs.