The purpose of the study was to establish the relationship between project leadership competencies, project communication, community participation and project implementation efficiency in selected community-based projects in Rakai district in the central region of Uganda. The study adopted cross sectional survey design to study project leadership competencies, project communication, community participation and project implementation efficiency in selected community based projects in Rakai district. Primary data was collected using self-administered questionnaire issued to the respondents. A sample size of 260 Community based projects was used based on the derivation from the approved sampling table of Krejcie and Morgan, (1970) with 3 people from each selected project. Data was analyzed using statistical package for social scientists (SPSS V 20) package and Pearson correlation coefficient was used to measure the strength of relationships between the variables understudy. The findings obtained revealed that there was a positive and significant relationship between project leadership competencies, project communication, community participation and project implementation efficiency in selected community-based projects in Rakai district in the central region of Uganda. The findings shown that there was a positive significant relationship between project communication and community participation (r=.877**, p<.01). This meant that any positive change in project communication is associated with a positive change in community participation. In other words, project communication elements like Intra-project communication and Extra-project communication are associated with community participant. The study recommends that community based projects should put in place more measures such as encouraging project communication from low level (subordinates) so that they can easily improve on the forms of project communication since they were found to be more adequate. This will help in the flow of information from the top management of project teams to the other employees within the project.