This study examined the relationship between innovation strategies and the business performance of small and medium enterprises (SMEs) in Wakiso District, Uganda. Innovation had been widely recognized as a fundamental driver of business competitiveness and long-term performance, yet its adoption patterns and performance effects among Ugandan SMEs remained poorly documented. The study investigated four innovation strategy dimensions: product/service innovation, process innovation, market innovation, and organizational innovation. A cross-sectional survey of 284 SME owners, managers, and employees in Wakiso District was conducted between February and May 2023. Multiple regression analysis revealed that innovation strategies collectively explained 54.9% of the variance in SME business performance (R² = 0.549), with product/service innovation and market innovation emerging as the most powerful predictors. The study contributed to the innovation-performance literature in the SME context of subSaharan Africa and provided practical recommendations for SME operators, policymakers, and business development support organizations in Uganda.