ABSTRACT This research study looked at team work and employee performance in microfinance institutions in Uganda. The purpose of the study was to establish the relationship between teamwork and employee performance in microfinance institutions in Uganda. The objectives of the study included the different forms of teamwork used in VisionFund, the effect of teamwork on employee's performance and employees' perception towards teamwork in vision fund. The study used a case study design. A sample survey was carried out to seek the opinion of respondents on the effect of teamwork on employee performance in Vision Fund Uganda. Population of 36 respondents was used. These were the employees of Vision Fund Uganda who included managers, Assistant Managers, supervisors and Support employees. Simple random sampling techniques were used in order to give equal opportunities to respondents participate in the study. Looking at the findings: Among the forms of teamwork used, problem solving team was the most prominent while formal and parallel teamwork being the least. The researcher also found out that achievement of common goal was the mostly used while commitment of workers was the least used in the organization. findings on the effect of teamwork on employee's performance was found out that teamwork ensures commitment of employees, workers ability to meet their goals, it leads to Coordination 1imong workers and sharing of ideas among workers, it was also found out that workers JV desire to have teams in the organization. The employees' perception on team work was revealed that teamwork has got greater contribution on the performance of workers and this was represented by 56%. The research study found that there were various forms of teamwork at Vision fund and the most prominent was problem solving teams. Team was also has great contribution on the coordination of workers in Vision fund Uganda.