This study aimed at examining the effect of FDI inflows and FDI-inflow volatility on economic growth in Uganda. Although Uganda has targeted annual growth of about 8% per year over a thirty year period to become a modern state, GDP growth has annually remained below target. This is despite the liberalised investment climate. The study thus set out to establish how FDI inflows and FDI-inflow volatility affected growth in the country. Time series data for the period 1991-2020 are used in the analysis. The empirical model is estimated by the method of Auto Regressive Distributed Lag (ARDL). Results show that FDI inflows have a positive and significant effect on Uganda’s GDP both in the short run and in the long run whereas volatility positively affected GDP in the short run but with a negative long run effect. The study thus recommends broadening of FDI inflows as well as streamlining of the investment code to reduce FDI volatilities.