This study examined the influence of microfinance loans on women empowerment in rural areas of Uganda, with specific focus on Kyabugimbi Sub-County in Bushenyi District. Guided by three research objectives—to assess the effect of individual lending on women's economic empowerment, to examine the influence of group lending on women's social empowerment, and to evaluate the impact of financial literacy training on women's decision-making autonomy—the study adopted a cross-sectional survey design. Data were collected from 214 women beneficiaries of microfinance loans in Kyabugimbi Sub-County using structured questionnaires and focus group discussions. Descriptive analysis revealed that group lending had the highest mean score among microfinance modalities (mean = 3.89, SD = 0.74), while financial literacy training was most strongly associated with decision-making autonomy (mean = 3.76, SD = 0.81). Pearson correlation analysis confirmed significant positive relationships between all microfinance loan variables and women empowerment outcomes. Multiple regression analysis established that the three microfinance dimensions collectively explained 71.3% of variance in women empowerment (R² = 0.713), with group lending as the strongest predictor (β = 0.381). The study concluded that microfinance loans significantly contribute to women empowerment in rural Uganda and recommended expansion of group lending programs, integration of financial literacy into loan disbursement processes, and targeted credit products for rural women entrepreneurs.