Uganda has 56 ethnic groups, the largest being the Baganda, occupying the northern shores of Lake Victoria, and the smallest are the Ik, who are found in the northeastern corner of the country. All cities and towns of Uganda as well as state institutions are known for high levels of heterogeneity and the country's politics has been a reflection of its ethnic plurality. However, peace, tranquillity, stability, regional economic equity and orderly transfer of political power have been elusive in Uganda. This paper addresses the role of ethnic identities in the politics of Uganda. It makes an attempt to unearth the extent to which ethnicity has ensured political stability with the view to illustrating whether ethnic identities have been a blessing or a curse. The paper is guided by the ethnic theories of primordialism and instrumentalism. Using interviews with key informants, archival information and a review of the available literature, the author concludes that ethnicity has largely been a curse in post-colonial Uganda but in the pre-colonial epoch it was a blessing.