Abstract: Communication of succession intent and corporate governance are critical determinants of sustainability in family-owned enterprises. This study examined the clarity of succession strategies, employee engagement, and role alignment, mediated by governance practices, to assess their influence on the sustainability of selected family-owned SMEs in Uganda’s central region. The study adopted a mixed-method exploratory design, combining quantitative survey data with qualitative interviews to capture both statistical relationships and contextual insights. Quantitative data were collected from 166 respondents using structured questionnaires, while qualitative insights were obtained through key informant interviews. Findings revealed that clarity of succession communication moderately enhanced transparency (M = 3.199, SD = 1.151), while employee awareness (M = 3.711, SD = 0.874) and role alignment (M = 3.922, SD = 0.623) strongly reinforced confidence and continuity. Regression results confirmed that succession communication significantly predicts sustainability (β = 0.362, R² = 0.337, p < 0.001), while corporate governance emerged as an even stronger predictor. Qualitative evidence highlighted emotional reluctance and informal practices as barriers, with leaders admitting, “everything is in my head,” yet positive examples emphasized merit-based transparency. The study concludes that transparent communication, reinforced by governance, reduces uncertainty, mitigates conflicts, and transforms succession planning into a structured, accountable system. Recommendations include formalizing communication strategies, institutionalizing open forums, integrating succession into performance reviews, and strengthening governance frameworks to ensure resilience and long-term sustainability of family-owned SMEs in Uganda.