This study aimed to assess the effects of workplace conflicts on employee performance and organizational productivity at Kazo General Hospital in Uganda. A mixed methods research design was employed incorporating questionnaires, interviews, and productivity data analysis to achieve the stated objectives. A total of 40 hospital staff members representing various clinical and support departments were purposively selected and administered pre-tested structured questionnaires to identify the prevalent forms and causes of conflicts experienced. Relevant productivity indicators such as staff turnover, absence rates, and service delivery targets for the past year were also obtained from hospital records for comparative evaluation. The findings revealed that interpersonal conflicts stemming from differences in work ethics and personalities most commonly manifested as verbal abuse, gossiping, and isolationism. Organizational factors like understaffing, unsupportive supervision, and uneven workload distribution also significantly contributed to disputes. Both questionnaires and interviews established that conflicts notably increased stress levels, lowered morale and commitment, and impaired concentration at work. Productivity losses from overtime working, reworks and absenteeism that followed disputes were additionally evident in records. Employee turnover was found disproportionately higher in departments reporting frequent conflicts. Therefore, the results strongly demonstrated that unresolved workplace conflicts negatively impacted individual job performance and compromised organizational effectiveness through reduced productivity and higher retention costs at Kazo General Hospital. This emphasized the need for pragmatic conflict resolution to enhance staff welfare and optimize service delivery. The study provided implementable recommendations focusing on open communication platforms, supportive supervision, structured grievance procedures, and regular trainings to help minimize future disputes.