This study examines the relationship between Uganda's Parish Development Model (PDM) and local economic development within the urban context of Kampala District. Employing a concurrent mixed-methods approach, the research investigated how three key independent variables Institutional Implementation Capacity, Urban Livelihood Adaptation, and Pre-existing Associational Capital influence PDM-facilitated economic outcomes. A cross-sectional correlational design was utilized, collecting data from 333 respondents across four stakeholder groups: parish implementing officials, district supervisors, PDM beneficiary group leaders, and household members. Quantitative data were analyzed using descriptive statistics, Pearson correlation, and regression analysis, while qualitative insights were derived from interviews and focus group discussions. Findings revealed a significant positive relationship between all three independent variables and local economic development outcomes, with Urban Livelihood Adaptation demonstrating the strongest predictive power (β = .631, p < .001). Institutional Implementation Capacity showed a moderate-strong relationship (β = .572), highlighting challenges in transparency and impartiality despite adequate technical competence. Pre-existing Associational Capital exhibited a moderate yet significant relationship (β = .498), emphasizing the role of social infrastructure. The study concludes that the PDM's effectiveness in Kampala is contingent upon strengthening local governance integrity, formally supporting urban-appropriate enterprise adaptation, and strategically leveraging community social networks. Recommendations are provided for policymakers, local administrators, and development practitioners to enhance program design and implementation in urban settings. Keywords: Parish Development Model, local economic development, institutional capacity, urban livelihoods, social capital, Kampala, Uganda.