ABSTRACT This study investigated internal communication and employee retention at ENHAS. The following objectives guided the study: i) to determine the effectiveness of internal communication at Entebbe Handling Services Limited; ii)to establish the level of employee retention at Entebbe Handling Services limited; and iii)to find out the relationship between internal communication and employee retention at Entebbe Handling Services limited. The study used descriptive survey design with a target population of 260 participants. Krejcie and Morgan's (1970) table was used to determine the sample size of 155 respondents from among the supervisory and support staff ofENHAS. Data was collected using questionnaires and analyzed using graphs, frequency and percentages tables. Pearson Correlation Coefficients was used to determine the relationship between internal communication and employee retention at ENHAS. The study established that there was ineffectiveness of internal communication at ENHAS. There were also poor conditions to encourage employee retention at ENHAS. Furthermore, there was a correlation between internal communication and employee retention (r=.023, p