Abstract: This study aimed to assess the effect of project risk management on performance of Rwanda Urban Development Project (RUDP) in Rwanda. A descriptive and correlational research design was applied, and data analysis was conducted using SPSS to examine the relationship between project risk management practices and project performance. The R-value of 0.862 signifies a strong relationship between the independent variables and project performance, as values above 0.7 indicate a strong effect. The R-Square value of 0.742 indicates that 74.2% of the variations in project performance are explained through project risk identification, risk analysis, response planning, monitoring and control. A unit increase in project risk identification results in a 0.249 increase in project performance (β = 0.249, t = 4.195, p = 0.000), confirming its significance. A unit increase in project risk analysis leads to a 0.217 increase in project performance (β = 0.217, t = 2.771, p = 0.006), reinforcing its role in reducing project uncertainties. Project risk response planning contributes positively, with a unit increase leading to a 0.272 rise in project performance (β = 0.272, t = 3.151, p = 0.002), demonstrating its importance. Likewise, project risk monitoring and control positively impacts project performance. With a unit increase resulting in a 0.204 increase (β = 0.204, t = 3.029, p = 0.003). The study recommended that project managers establish a detailed scope definition framework and ensure strict adherence to guidelines throughout execution to prevent scope creep and maintain project focus.