This study examined the relationship between digital marketing practices and the sales performance of small and medium enterprises (SMEs) in Mbarara City, Uganda. As digital technologies reshape how customers discover, evaluate, and purchase products, digital marketing has become a critical capability for SMEs seeking to compete and grow. The study investigated how social media marketing, search and content marketing, mobile marketing, and email and customer-relationship marketing relate to sales performance. A cross-sectional survey design with a mixed- methods approach was adopted, and data were collected from 180 SME owners and managers using structured questionnaires and interviews. Descriptive statistics, Pearson correlation, and regression-based path analysis were used. The results revealed a strong positive and significant relationship between digital marketing practices and sales performance (r = 0.66, p < 0.01), with the practices jointly explaining 64.0% of the variance in sales performance (R² = 0.640). Social media marketing and search and content marketing emerged as the strongest predictors. The study concludes that effective digital marketing practices significantly enhance SME sales performance and recommends investment in social media and content marketing, digital-skills development, and reliable connectivity.