The increase in tourism activities has increased community participation and involvement in the achievement of tourism growth. This study assessed the role of community participation in tourism growth around Lake Bunyonyi with Kitumba and Bufundi as selected areas of the study. This study was guided by two specific objectives of the study that were to; determine the tourism products offered by the local community around Lake Bunyonyi, and determine the challenges local communities face in promoting tourism around Lake Bunyonyi. A cross-sectional study collecting qualitative and quantitative data was conducted from 378 study participants including; Tour guides, hotel, restaurant, and guest house employees, small businessmen, farmers, local leaders, fishermen, and some government officials responsible for the tourism industry. The quantitative data were assigned numerical codes before being edited and entered into the Statistical Package for Social Sciences (SPSS) version 20. (Armonk, New York, USA). Frequencies and percentages were used to achieve the objectives. Thematic analysis was used to analyze the qualitative data. Results indicated that of the 378 respondents, 256 (67.7%) were males, 139 (36.8%) were aged 31-40, 219 (57.8%) were married, 152 (40.2%), 378 (100.0%) were Ugandans, and 158 (41.8%) of the respondents come from the families with more than 6 people. 372 (98.4%) of the respondents agree that there are tourism activities around Lake Bunyonyi, and the main tourist attraction is Lake Bunyonyi, and the major activity around Lake Bunyonyi is the Boat ride 98 (25.9%). The major challenges faced by the local communities in promoting tourism around Lake Bunyonyi Include; Inadequate capital for investment 102 (27.0%), Natural calamities 51 (11.1%), Language barrier, and Poor government policy in implementing its policies relating to tourism issues respectively 42 (11.1%), Lack of support from the government as well as lack of funding 34 (9.0%). It is recommended that the government fulfill its pledge to construct tarmac roads around the lake and provide a ferry for inland transportation, provision of equal opportunities to the locals around Lake Bunyonyi, More investments are needed especially in accommodation and recreation highly recommended as well as improved standards of living.