Uganda has policies and laws that can foster legal timber trade. This chapter reviews the key sources of timber and current production channels in Uganda. It describes policies and laws governing timber trade and challenges encountered in the quest for legal timber trade. We also show the underlying and proximate causes of illegal timber trade and its impacts on livelihoods, environment, and economy. The sources of timber in Uganda were previously the government-owned forest plantations and natural forests which have dwindled. There is a timber deficit and this has proliferated illegal trade in timber which affects national and local government revenue and forest degradation. Formal, informal, and a mix of formal and informal systems are the main channels of timber production. The responsible agencies that are mandated to ensure legal timber trade are engulfed by institutional weaknesses and socio-cultural and political landscape that is riddled with dishonesty, impunity and lack of transparency. There is need for more engagements to build momentum for promoting legal timber trade and enforcement of rule of law. This can be attained through improved interand intra-institutional collaboration, improved accountability and creating incentives for legal timber trade.