This study examined the impact of value addition strategies on smallholder farmers in Bubbeza Sub-County, Sironko District, Uganda. Smallholder farmers, who dominate Ugandan agriculture, frequently sell raw, unprocessed produce at low prices, and value addition is widely promoted as a means of raising their incomes and livelihoods. The study investigated how processing and packaging, grading and quality improvement, storage and preservation, and market linkages relate to farmer livelihood outcomes. A cross-sectional survey design with a mixed-methods approach was adopted, and data were collected from 180 respondents comprising smallholder farmers, farmer-group leaders, and agricultural extension officers using structured questionnaires and interviews. Descriptive statistics, exploratory factor analysis, Pearson correlation, and structural (path) analysis were used. Factor analysis confirmed the construct validity of the value addition dimensions, which loaded onto coherent factors and explained 67.9% of the variance. The results revealed a strong positive and significant relationship between value addition strategies and farmer livelihood outcomes (r = 0.66, p < 0.01), with the strategies jointly explaining 64.0% of the variance in livelihood outcomes (R² = 0.640). Processing and packaging (β = 0.32) and market linkages (β = 0.30) emerged as the strongest path predictors. The study concludes that value addition significantly improves smallholder livelihoods and recommends strengthening processing, market linkages, and farmer capacity.