The study was about Youth Livelihood Programme (YLP) and Poverty Reduction among youths in Sheema District, Western Uganda. It was guided by the following objectives; to examine the indicators of poverty reduction among the Youths in Sheema District and to determine whether there is a relationship between youth livelihood programme (YLP) and poverty reduction among the Youths in Sheema District. The descriptive survey design was also adopted since it encourages the use of cross-sectional approach that is useful in obtaining an overall picture as it stands at the time of the study. This study utilized Krejcie& Morgan (1970) sample size table to come up with an adequate sample 272 size and the sample size table allows the researcher to determine the sample size for a given population with 95% certainty. The quantitative data from this objective was analyzed using descriptive statistics formulae provided by the statistical packages for social science SPSS v.16. The analyzed results were tabulated appropriately using frequency Tables and percentages and sample percentages to illustrate the responses to the questionnaires. The findings revealed that Youth Livelihood Programme trainings are adequate to all group members as indicated by 60(23%) who strongly agreed, 36(14%) who agreed, 97(37%) who were not sure, 33(12%) who disagreed and 97(37%) who strongly disagreed. The study revealed that Youth livelihood programme groups are involved in income generating projects in sectors like Agriculture trade, service industry, vocational skills, agroindustry (value addition), creative industry, agroforestry and ICT as indicated by 57(22%) of those who strongly agreed, 73(28%) who agreed, 51(19%) who were not sure, 25(10%) who disagreed and 56(21%) who strongly disagreed. The researcher concludes that Money should be put at parish level to avoid delays in giving the money to the youths.