Households, a fundamental unit in societal structure, are witnessing transformative changes in headship dynamics, particularly the rise of female-headed households (FHHs). This study, conducted in Kasese Municipality, Uganda, explores the impact of FHHs on family welfare, addressing a critical gap in existing literature. With a sample size of 80 FHHs, the study employs correlation and regression analyses. Results reveal a strong negative correlation (-0.630, p=0.002) between FHHs and family welfare, aligning with the Feminization of Poverty theory and Social Capital theory. The regression analysis further indicates that 56.3% of variations in family welfare can be explained by FHHs (R=0.342). Beyond statistical figures, qualitative insights from participants underscore economic disparities, genderbased discrimination, and asset control challenges within FHHs. Policymakers are urged to design gender-inclusive economic initiatives, strengthen social support networks, and integrate gender-sensitive perspectives into poverty alleviation policies, fostering holistic improvements in family welfare in Kasese Municipality.