The researcher investigated the contribution of Microfinance service institutions on the Economic empowerment of women in UGAFODE Mbarara Municipality. The study pursued a quantitative approach, the study population was100 women clients and staff from where a sample of 80 respondents were selected using Purposive sampling and simple random techniques. Study findings revealed that Microfinance credit have enabled women to startup businesses and earn income as given by 90% in agreement, higher mean of 4.05 and a less standard deviation of 0.57. Results also revealed that Microfinance credit enable women to purchase property like land, animals, furniture, solar and pay school fees for their children and they have been able to participate in the leadership positions as given by high mean of 4.08 and a less standard deviation of 0.72. Results furthermore revealed that there is a strong positive correlation of 0.745 between the micro finance services provided and women economic empowerment that is statistically significant at p-value of 0.000 < 0.05. Based on the research findings, researcher recommends that MFIs should reduce on the interest rates, increase the amount given as loans to the clients and assess repayment capabilities before loan provision. Further, the researcher recommends that MFI clients in other MFIs should be trained thoroughly before undertaking credit facilities for an enterprise, use money for intended purposes only and avoid money misuse and diversion of funds