Fiscal decentralization has been promoted as a mechanism for improving service delivery and financial accountability in local governments. Kampala City Council Authority (KCCA) underwent significant fiscal decentralization reforms following its establishment in 2011, transferring substantial financial responsibilities from central government to local authority. However, concerns persisted regarding the quality of financial reporting amid increased fiscal autonomy, raising questions about the relationship between decentralization and financial reporting standards. The study employed a cross-sectional survey design using mixed methods approach. A sample of 92 respondents was selected from KCCA's finance department, internal audit, division administrators, and council members through purposive and stratified random sampling. Data were collected using self-administered questionnaires and semi-structured interviews. Quantitative data were analyzed using SPSS version 26, employing descriptive statistics, Pearson correlation, and multiple regression analysis, while qualitative data underwent thematic content analysis. Findings revealed a significant positive relationship between fiscal decentralization and quality of financial reporting (r=0.731, p