The study aimed at establishing the relationship between the role of parental level of income and learner retention in primary schools in Rwamucucu sub county, Rukiga district, Uganda. A case study research design adopting quantitative and qualitative approaches was used. Data from a sample of 504 respondents was obtained using questionnaires and interview guides which were analyzed descriptively and inferentially. The results of the study showed that parents’ level of income needs had a positive and significant relationship with pupils’ retention rate (r=0.574**, Sig=0.01). The study concluded that parental level of income plays a vital role in pupils’ retention in UPE schools of Rwamucucu Sub-County. The study recommended that since poverty highly affects pupils’ retention, parents should be sensitized to engage in income generating activities so that they can meet the basic needs as well as the vital costs for their children’s education, school administrations should also involve parents and all the stakeholders in the planning process including engaging them in all the meetings.