This study examined the relationship between corporate governance practices and financial performance of commercial banks in Uganda. Corporate governance has increasingly become an important issue for regulators, investors and banks themselves given its role in boosting sustainable growth and stability in the financial sector. However, weaknesses in governance were reported among some Ugandan banks that threatened their stability and profitability. The research adopted a quantitative approach using a sample of 40 banks out of the 34 licensed banks in Uganda as of 2021. Primary data was collected using questionnaires distributed to senior risk, audit and compliance managers while secondary financial data was obtained from annual reports for the period 20162020. Findings revealed that board independence had a statistically significant positive effect on return on assets, implying greater independent oversight enhanced profitability. However, no other board attributes influenced return on equity. It deviated from the average values of the sampled commercial by 4.36. The financial performance of the sampled commercial banks that is measured by the net profit margin (NPM) for the four years averaged 33.61. The maximum value of the net profit margin was 55.0, the minimum value was 26.0 and it shows a deviation of 8.29 from the mean value. Further tests established internal audit function moderated the relationship between independence and return on assets such that the positive governance impact was strengthened by effective internal controls. The researcher also recommends that the commercial banks in the Republic of Uganda should strive towards maintaining a minimal number of members in the audit committee as revelation from the study indicate negative impact and influence on most of the banks‟ performance indicators. This is because of the fact that too big audit committee size brings about issues of consensus and too small sized committee is susceptible to manipulations by strong headed and influential managers and inside shareholders which may derail the transparency with reports are expected to be compiled and presented.