Abstract: Temperate fruit growing is a new but promising enterprise in the highlands of south-western Uganda. A study was conducted in three sub-counties of Bubare, Muko and Hamurwa of Rubanda county, Kabale district between May and December 2004, to: determine the factors that influence the adoption of Temperate Fruit Tree Management (TFTM) practices and identify the niche and site quality for fruit tree growth. Semi-structured questionnaires were used to collect data from 60 farmers selected using purposive sampling procedure. The assessment of the niche to grow fruit trees was done by measuring fruit performance as shown by the crown diameter, root collar diameter and tree vigour. Site quality was established by analysis of soil samples for nitrogen, phosphorus, potassium, calcium, magnesium, carbon and pH. The results of the logit analysis showed that variables related to resource endowment such as size of landholding, contact with extension service providers and access to credit impact significantly affect the adoption of TFTM practice. Farmers mainly consider soil fertility, tree-crop compatibility, tree maintenance and protection costs when selecting sites and niches to plant fruit trees. Most of the fruits were planted in the orchard and internal boundary and these were the niches where the fruits performed best. The farmers prefer planting fruit trees in the cropland than in the homestead. In the cropland, the temperate and tropical fruits survive best in the orchard, internal boundary and terrace boundaries.