Uganda's arts and humanities sector is a significant part of its cultural and social fabric, yet research on policy implications in this area remains limited. A mixed methods approach involving qualitative interviews with stakeholders and quantitative surveys among artists, academics, and policymakers was employed. Findings indicate a significant underfunding in arts and humanities sectors (35% of respondents reported budgets below $10,000), which hinders innovation and quality output. The study highlights the urgent need for increased government investment to support these fields and foster sustainable development through policy interventions. Specific recommendations include increasing public funding, establishing arts councils, and implementing mentorship programmes for emerging artists.