ABSTRACT -the study sought to investigate the relationship between employee development and its performance in organizations. Uganda Revenue Authority, Nakawa, as an illustrative ~ example. The study seeks to bring out the importance of employee development in organization performance. The objective of this research was to bring out the forms of employee development 1sed at Uganda Revenue Authority, the effects of these forms of development not only on the performance of employees but on the organization as a whole and challenges , experienced in carrying out employee development programs. this research also consulted other views of different authors and scholars who worked )n the issue from libraries, journals, from different writers who worked hard to improve: The employee development and organizational performance through better ) performance, financial benefits, achieve objectives and improved production being some of the ways of improving employee development. The research used both qualitative and quantitative research design to carry out, the study. Qualitative design was used to collect factual information and quantitative design :o collect numerical facts of the study. The research entailed both primary and secondary forms of data. The instruments used to collect this data were mainly questionnaire and interviews. The study experienced a number of limitations during the research, they include; inadequate time allocated to effectively carry out the study, there was delay in the response from the respondents, thus making it difficult to conduct the interview and compile the data in time.