ABSTRACT This study assessed the relationship between customer care and customer retention a case of MTN -Uganda. The research was based on the bucket-mouth theory of customer retention. The general objective of the research was to investigate the relationship between customer care and customer retention. The specific objective were; to determine the effect of customer care in MTN Kampala district, to determine forms of customer care being used in MTN, to establish ways of how to retain customers. The scope of the study was MTN-Uganda central office Kampala branch whose geographical location is in Kampala UDB towers gth floor 22 Hannigton road. The time focus ofthe study was between 2005 to 2008. The respondents to this particular research were the top management ofMTN, customers and employees ofMTN central office. The research used structured and unstructured questionnaires to collect primary data; the research used descriptive method as the research design. The data was analyzed using statistical tools such as pie charts and table's graphs. Analysis of data was done by excel spread sheet. The researcher used simple random sampling method to collect data from the target group. The findings of the research revealed that customer care plays a great role in the company performance. It also reveals that good quality services, customer satisfaction, increased profitability and company reputation are the effects of customer care. Which gives the company a competitive advantage and at the same time the company satisfies the customers. The company using telephones, emails text messages (sms) and writing letters was a way of responding to customer's complaints. The company retains its customer using regular feedback from customers, listens to customers, and acting on feedback immediately it enables the company to attract new customers and retains the current customers. Based on the findings the researcher recommended that the MTN should find away to diversify customer care all over the country and encourage continuous customers care for all the customers and employees and MTN should develop a way of appreciating loyal customers and company to participate more in the community work as an act of social responsibility, MTN should apply all the effort to see that the customer is satisfied and give full support. MTN should ensure enough skills on how to handle customers at the same time retaining them and this should be the core of business progress.