The study aimed at credit recovery policy and financial performance of microfinance institutions in uganda. a case study of pride microfinance kampala branch. In investigating the intricate relationship between credit recovery policy and financial performance of microfinance institutions in Uganda, with a specific focus on the Pride Microfinance Kampala Branch, a comprehensive and systematic methodology was employed. The research design embraced a mixed-methods approach, incorporating both qualitative and quantitative techniques to provide a holistic understanding of the multifaceted dynamics at play. Findings of the study shown the relationship between credit recovery policy and financial performance (dependent variable). It shown that through bivariate means, the correlation between Loan recovery policy and financial performance is (r) = 0.577. This implied that there was a moderate positive relationship between the two variables since the significant value was 0.000 which was less than 0.05 (p < 0.05). The management of Pride Microfinance Uganda limited and Microfinance institutions should consider revising and reestablishing it procedures of collecting credits from clients so as to be cost-effective. This can be done by using alternative and cheaper sources of debt collection procedures. Therefore, there is a need to develop an effective loan repayment system, Microfinance institutions’ committee members and staffs are recommended to visit borrower’s business premises and verify the borrower’s assets.