The study aimed at cultural tourism and community development and it was guided by the following objectives; To examine the effects of imbalu festival to economic development in Mbale Uganda and to examine the relationship between cultural tourism and community development in Mbale Uganda. The study population included the management and leaders and members of the cultural tourism and community developments. The study population was consisted of both male and female respondents. The study was based on a sample size of 40 that was drawn from 100.The sample size of 40 sufficient as it was supported by Krejcie, Robert, Morgan and Daryle in (1970) in their work. They stated that where a total population is 100, a sample size of 40 or more is sufficient. Mbale central was selected for this study which include; motto village, nauyobugama town council. From the findings, it was revealed too, that majority of the respondents agreed when they were asked to give their opinions about cultural activities (rituals) in Mbale Uganda makes (SD=17(26.6%), D=14(21.9%). This implied that cultural activities (rituals) do have a lot of stages for a boy to become a man in bagisu tribe. It was Furthermore revealed from this study that majority disagree when they were asked whether khukhuyalula hatching was a site of short cuts representing SD=17(26.6%), and (SD=17(26.6%). It is recommended that there is a need to put in place strategies and guidelines for improving the cultural sites in Uganda. Authorities responsible for tourism in Uganda need to set up policies for cultural sites operations and will improve standardization of activities.