This report reviews performance of Uganda's health sector and assesses options for increasing total health spending and improving efficiency of health spending to improve health, nutrition, and population outcomes. Although Uganda's health outcomes are improving, the country is unlikely to achieve its national targets for health as well as the health related Millennium Development Goals (MDG) Uganda is faced with a high disease burden from communicable diseases; in addition, the country is witnessing a growing epidemic of non communicable diseases. The main conclusion of the report is that while Uganda needs to continue exploring ways to mobilize funding for health it needs to improve the efficiency of its health spending to maximize the health benefits for its population. Uganda could reap significant savings by improving management of human resources for health; strengthening procurement and logistics management for medicines and medical supplies; and by better programming of development assistance for health. Besides, Uganda needs to take proactive steps to mitigate growing pressure to increase health spending.