Using the Uganda National Panel Survey data of 2009/10 and 2010/11, the paper reveals significant income mobility as well as movements in and out of consumption poverty in a period of one year. Of the poor in 2010/11, more than half were new poor households against the rather strong economic growth – that grew from 5.9 percent in 2009/10 to 6.7 percent in 2010/11. Instead, shocks in terms of drought and ill-health seem to have led to significant reduction in the household incomes as well as reduction in food production. Regionally, the incidence of chronic poverty remains higher in the lagging regions of eastern and northern Uganda, although pockets of chronic poverty are also observed in the more developed regions. Overall, these results do confirm the dynamic nature of poverty in Uganda that needs to be considered in designing and any refinement of the government poverty reduction interventions.