This study examined the relationship between inventory management practices and business profitability among supermarkets in Kampala, Uganda. The inventory management dimensions studied included inventory control systems, supplier relationship management, demand forecasting, and inventory turnover optimization. A cross- sectional survey was conducted on a sample of 90 supermarket managers and procurement officers drawn from 30 registered supermarkets in Kampala. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Results indicated a significant positive relationship between inventory management practices and business profitability (r = 0.693, p < 0.01). Regression analysis showed that inventory control systems (β = 0.334, p < 0.001), supplier relationship management (β = 0.276, p < 0.01), and demand forecasting (β = 0.248, p < 0.01) were significant predictors of profitability, collectively explaining 63.7% of the variance in business profitability (R² = 0.637). The study concludes that systematic and technology-enabled inventory management is a key driver of supermarket profitability in Kampala and recommends adoption of integrated inventory management systems and strengthening of supplier partnerships.