The study assessed “reward system and employee performance in City Tires, Kampala Capital City.” The study objectives were; to find out the reward level, to explain the level of employee performance, to determine the relationship between reward system and employee performance with a null hypothesis stating there is no significant relationship between total reward systems and employee performance. Descriptive and correlation research designs guided by both qualitative and quantitative research approaches were used. Data was gathered randomly from 82 employees of City Tires using a self-administered questionnaire. Results indicate a high grand mean of 2.75 and standard deviation of 0.92 which implies that there was high level of reward system at City Tires, Kampala Capital City. Findings indicate a high grand mean of 3.09 and standard deviation of 0.844 which implies that there was high level of employee performance at City Tires, Kampala Capital City. Results indicate that there was a positive and statistically significant relationship between reward system and employee performance at City Tires, Kampala Capital City (P<0.01, r 0.318**). Thus, the null hypothesis was rejected and its alternative positive hypothesis considered suggesting that there was a statistically significant relationship between reward system and employee performance at City Tires, Kampala Capital City. Therefore, City Tires, Kampala Capital City should keep on providing reasonable reward systems especially the allowances.