This study explores; the library needs of students and tutors of Allama Iqbal Open University (AIOU), utilization level of the library facilities and resources, the problems in the use of library, and suggestions for improvement of library facilities for students and tutors. Data collected from 4080 students and 526 tutors belonging to 15 different regional offices showed that students and tutors needed library for various educational purposes, the regional libraries were not being used much, and both tutors and students were facing various problems such as unsuitable library timing, long distance between library and their residence, non availability of latest journals, non availability of required material, lack of temperature control in the library, insufficient study area, lack of latest books, and inadequate staff. For improving library facility at regional level, the students and tutors suggested to; provide more books and journals, expand library timings, arrange library facility at workshop venues, make arrangements to advertise the resources and services at the library to the students, provide computers and internet service, provide trained staff, and arrange partnership with other academic libraries.