The study examined the impacts of aid reduction on refugee welfare in Rwamwanja Refugee Settlement in Kamwenge District, Uganda. The background of the study was anchored on the persistent global decline in humanitarian funding and the widening gap between refugee needs and available donor support, which has significantly constrained service delivery in protracted refugee settings. The study was guided by the Human Needs Theory propounded by Abraham Maslow, which emphasizes physiological needs (such as food, water, and shelter) and safety needs (including security and health). The study adopted a mixed-methods research design, integrating both quantitative and qualitative approaches. A total sample of 40 respondents was targeted, comprising 25 refugee household heads, 5 community leaders, 5 humanitarian staff, and 5 local service providers, achieving a 100% response rate. Data were collected using Focus Group Discussions (FGDs), Key Informant Interviews (KIIs), and structured tools. Quantitative data were analyzed using descriptive statistics, Pearson correlation, chi-square tests, and multiple linear regression, while qualitative data were analyzed thematically. The results revealed that 100.0% of respondents confirmed the reduction in humanitarian aid, with food aid being the most affected sector reported by 96.0%, followed by healthcare (76.0%), education (72.0%), and livelihood support (64.0%). Pearson correlation analysis indicated a strong positive relationship between the number of aid types reduced and welfare deterioration (r = 0.741, p < 0.01). The regression model explained 54.9% of the variance in welfare outcomes (R² = 0.549, F (5.19) = 6.097, p = 0.002), with food aid reduction emerging as the strongest predictor (β = 0.482, p = 0.003), followed by healthcare (β = 0.362, p = 0.014) and education (β = 0.298, p = 0.044). The study concluded that humanitarian aid reduction has led to severe multidimensional welfare deterioration, particularly in food security, healthcare access, education, and livelihoods. The study therefore, recommended that humanitarian agencies and governments should prioritize restoration of food and healthcare assistance, strengthen livelihood diversification programs, invest in refugee education and skills development, and promote sustainable funding mechanisms to bridge the humanitarian financing gap. Furthermore, targeted interventions should be implemented to protect vulnerable groups, especially women and children, from harmful coping strategies.