The fisheries sector contributes greatly to the Ugandan economy in terms of income; employment and export revenue; yet recent developments, especially the reducing fish stocks, are posing a big threat to the sector. This study was carried out to assess the current status of the Ugandan fisheries sector, suggest alternative development strategies, and evaluate their impacts on livelihoods, export revenues, and the environment. Data used in the study were obtained from the Department of Fisheries Resources, the Aquaculture Research and Development Center, Fisheries Resources Research Institute, and through a review of literature. Interviews were held with many actors in the sector. Development strategies were evaluated in terms of market conditions, technical constraints, and institutional constraints. There are indications that excessive fishing effort and the use of unsustainable fishing methods over the last decade have resulted in over exploitation of the resource above the maximum sustainable yield, due in part to ineffective national and regional regulation. Fish stocks have subsequently diminished, leading to less catch per boat and stagnation in total fish production at around 220,000 tones. In contrast, the demand for Ugandan fish in local, regional, and international markets continues to grow. Fishermen incomes have reduced tremendously, processing plants are operating below installed capacity, local processors/traders are being forced out of business, and less fish reaches consumers