Poverty has had significant contribution to school dropout of students from secondary schools located in rural area. This study which was under the topic „‟the impact of poverty on student dropout form schools in rural areas was undertaken in Kihihi town council Kanungu District southwest Uganda. The study was aimed at finding out how poverty impacted school dropout. Specifically, the study investigated the relationship between poverty and school dropout and its impact on student’s dropout overall. It also looked at interventions that could be adopted the mitigate school dropout. The study used cross-sectional design to analyze data and data was collected data form 80 respondents who were selected using stratified random sampling and census inquiry. Data was collected from respondents in the study area using questionnaires and interview guide. The study results revealed that poor students always have a quick entry into schooling and poverty in Uganda inhibits access to education because the full range of costs associated with attendance, particularly uniforms and transport, are unaffordable for households. Also, poor students have the inability to afford the direct costs of schooling and are often used in international documents to explain limited access to schools with children living in poverty have the odds stacked against them and may be more vulnerable to school failure. An uneducated parent may not send their child to schools, as they do not see education as a medium of increasing productivity and massive community sensitization on the value of education. Also, provision of bursaries to poor students will help to stop school dropout. Improving financial capabilities of parents will help to stop school dropout a well provision of quality and accessible education will help to stop school dropout.