The research investigates the reasons for the establishment of the National Library of Uganda, examines the process of its establishment and outlines its challenges and achievements. The historical background of library services in Uganda is presented. A total of twenty (20) respondents were interviewed from library information services and institutions. Data collection is done by in-depth face to face interviews using open-ended interview schedule, observation and documents. Findings revealed that the NLU was established because of the decentralization of the public libraries to the district which left the Public Libraries Board with few functions and there was also a need for a body to coordinate library services in the country. The two institutions acting as national libraries were ineffective. The challenges faced by the NLU include among others the nonfunctional rented building, lack of library policy, limited financial and human resources. Some achievements of the NLU are the improvement of the reading culture among school children, publishing the National Bibliography of Uganda.