The rapidly increasing human population and the export market have increased the demand for fish in Uganda. However, production of high-value wild fish stocks has stagnated, leading to a per capita consumption of ca. 8 kg, which is below the 17 kg recommended by FAO for healthy living. Uganda, with a population of 35 million people, needs 0.6 million tons (Mt) to meet FAO per capita consumption, while the export market requires an additional ca. 0.4Mt per year. The current production of 0.4Mt from capture fisheries and 0.1Mt from aquaculture leave a deficit of 0.5Mt. This deficit can be met through expansion of aquaculture, the fastest growing food production industry in the world. Cage fish farming in Uganda has demonstrated in a period of only ten years that it can increase fish production by 150-300 kg m-3 compared to 2-10 kg m-3 from pond aquaculture, which started about sixty years ago. Cage fish farming, however, has socio-economic, environmental, and technical challenges that need to be addressed and effective cage culture operations require ideal conditions for optimal production. We reviewed literature and examined existing data to develop best practices for establishment and operation of cage fish farms. These practices involve assessment of site suitability and capability, zoning, estimation of carrying capacity, effective operational practices, and monitoring the impact of the operations. This information is important for supporting cage fish farmers and securing the environment, and should continually be refined with new knowledge. The National Fisheries Resources Research Institute (NaFIRRI) and the Directorate of Fisheries Resources (DiFR) are continually updating the information and has set up a facility for research and training. There is need for government to build a robust policy and legal framework to guide cage fish farming.