This study investigated the relationship between poverty alleviation interventions and community development outcomes in Ludara Sub-county, Koboko District, Uganda. The study was motivated by persistent poverty levels in the Koboko area despite decades of government and non-governmental organization interventions. The specific objectives were to assess the nature of poverty alleviation programs implemented in Ludara Sub-county, to evaluate the impact of these programs on community development outcomes, and to identify the challenges affecting the effectiveness of poverty alleviation efforts in the area. A descriptive research design was employed, combining quantitative household surveys with qualitative focus group discussions and key informant interviews. A total of 120 households were surveyed using a structured questionnaire, and five focus group discussions and twelve key informant interviews were conducted. The findings revealed that microfinance and savings group programs, agricultural extension services, and community infrastructure projects were the dominant poverty alleviation interventions in the area. Regression analysis showed that participation in microfinance programs had the most significant effect on household income improvement (β = 0.478, p < 0.001), followed by agricultural extension services (β = 0.341, p < 0.01). Community development outcomes such as improved access to clean water, educational enrollment rates, and household assets were positively associated with sustained program participation. Key challenges identified included limited community awareness, poor road infrastructure, limited financial literacy among beneficiaries, and inadequate monitoring and evaluation of programs. The study concluded that targeted and participatory poverty alleviation programs had significant positive effects on community development in Ludara Sub-county, and recommended that program implementers strengthen community engagement, literacy training, and infrastructure development to enhance program effectiveness.