The current report presents a picture of the condition of the environment and natural resources in Uganda. It is divided into five sections. Section 1 introduces the country overview and background. Section 2 deals with the state of the environment and trends under five themes of atmospheric, terrestrial, aquatic, cross-sectoral resources, and important linkages between environment and poverty, health and the potential value of ecosystems services. Section 3 covers emerging challenges which include among others: food security and climate change. In addition, the section covers an outlook based on the possible scenarios for Uganda’s environment and natural resources, ecosystems and human wellbeing, in line with the national long term planning perspectives of the Vision 2025. Section 4 gives the conclusions and policy options for action and section five are annexes. It is clear from the information contained in this report that the state of our environment will determine the level of our prosperity now and for future generations. Over-exploitation of our natural resources is increasingly leading to environmental degradation and contributing to reduced ecosystem services and disasters. Reduced ecosystem services in turn contribute to poverty. As we strive to address social equity and economic development in the years to come, our awareness and ability to improve the state of the environment and secure environmental sustainability will shape our future.