Southwestern Uganda annually experiences prolonged drought that results in dramatic drop in milk production of dairy cattle. This study was conducted to assess the nutritional value and economic benefits of feeding silage and hay to dairy cattle in the sub-region. The cross-sectional study covered seven districts with 105 farmers interviewed during the wet and 45 others in the dry season. Up to 88 soil samples were collected and analyzed for soil texture, soil pH, organic matter and total Nitrogen, Phosphorus, Potassium, Calcium, Sodium and Magnesium. Likewise, 148 forage (105 fresh, 25 silage and 18 hay) tissues from 21 pasture species were collected and analyzed for nutritional values. Using a questionnaire, data on production costs and milk revenues were collected for cost-benefit analysis. Results showed that silage of Napier grass treated with molasses (10.2 MJ/kg) and hay of naturally established pastures (10.6 MJ/kg) had the highest metabolisable energy (ME) values, while the lowest (8.30 MJ/kg) was for star grass. Hay of star grass presented the highest level of crude protein (21.4%) with maize (corn) showing the lowest (9.38%). Digestibility of hay of naturally established mixed pastures was the highest (64.4%), followed by that of silage of Napier grass treated with molasses (62.0%), while star grass hay had the lowest (52.6%). With exception of silage made from maize, all the other six forms of silage had a good crude protein (CP) content. Regardless of the good CP content (≥9.9%), all silage untreated with additives was poor in quality since its ME was less than 9.9 MJ ME/kg and ration digestibility less than 67%. Nonetheless, feeding of silage and hay increased milk yield and farm productivity with a benefit-cost ratio of 5.5 and 2.7 for silage and hay respectively.