The coastal wetland zones of Lake Wamala are experiencing a noticeable shoreline retreat leading to loss of its resources and ecological services. This henceforth, calls for sustainable wetland resource management by clearly dissecting and understanding the prime cause of such losses. The study employed community-based participatory approach to capture stakeholder perceptions and knowledge on wetland resources in six villages namely; Mityana Town, Naama, Nkonya, Buzibazi, Mpongo and Lusalira. The study sought to find out the causes of wetlands degradation, impacts and mitigation strategies, needed to avert loss of such resources. Temperature data from Mubende Meteorological Station were compared using Analysis of Covariance (ANCOVA) and the average change in temperature was determined using SAS JMP 10 Software. Variability in rainfall was determined using the coefficient of variation (CV) calculated as a ratio to the mean and expressed as a percentage. Findings attributed climate induced factors as key bottlenecks to wetland resource loss. Findings further highlight increase in human population among other human-induced factors as cause of destruction and alteration of resources in the area. Results prove the derailing nature of wetland resources around Lake Wamala significantly affected livelihoods. In order to avert this trend, prudent measures such as formulation of feasible policy framework to govern and regulate activities in the area, co-management through local community and government partnership, capacity-building programs among relevant stakeholders to enhance awareness about wetlands and its ecological benefits in our quest to improve human welfare in the face of the changing climate.